Question
The Ocean View Cafeteria formerly collected from each customer as they reached the end of the food line. A cashier, seated at a cash register,
The Ocean View Cafeteria formerly collected from each customer as they reached the end of the food line. A cashier, seated at a cash register, rang up the amount (displayed on a digital screen) and collected money. Management changed the system, and now a clerk at the end of the line operates a calculator/printer machine and gives each customer a paper tape. The machine accumulates a running total internally. The customer presents the tape at the cash register on the way out and pays. The cafeteria manager justified the direct cost of $30,000 annually for the additional salary and $500 for the new machine by pointing out that she could serve four more people each weekday (Monday through Friday) and ten more people on Saturday and Sunday. The food line now moves faster, and customers are more satisfied. (The average meal tab is $12, and the total costs of food and service are considered fixed.) Besides, she said, my internal control is better. Evaluate the managers assertions (requires both quantitative and qualitative analysis).
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