7 A small mail order firm Seas Beginnings has one phone line. An average of 60 people per hour call in orders, and it takes an average of 1 minute to handle a call. Time between calls and time to handle calls are exponentially distributed.

If the phone line is busy, Seas Beginnings can put up to c  1 people on hold. If c  1 people are on hold, a caller gets a busy signal and calls a competitor (Air End). Seas Beginnings wants only 1% of all callers to get a busy signal.

How many people should the company be able to put on hold