Bank Boston has a branch at Bryant College. The branch is busiest at the beginning of the college year when freshmen and transfer students open accounts. This year, freshmen arrived at the office at a rate of 40 per day (8-hour day)

On average, it takes the Bank Boston staff person about ten minutes to process each account application. The bank is considering having one or two tellers. Each teller is paid $12 per hour and the cost of waiting in line is assumed to be $8 per hour.
(a) What is the total daily waiting cost for the single teller model?
(b) What is the total daily waiting cost for the two-teller model?
(c) What is the total daily service cost for the single teller model?
(d) What is the total daily service cost for the two-teller model?
(e) Which model is preferred?

(a) Total wait cost = [(5 * .833 hours) 8.] * 8 hours/day = $266.56
(b) Total wait cost = [(5 * .035 hours) 8.] * 8 hours/day = $11.20
(c) Total service cost = (1 * $12 ) * 8 hours/day = $96
(d) Total service cost = (2 * $12 ) * 8 hours/day = $192
(e) Two channel model