2. An immigration agent at an airport, on an average, could process 14 entrants

Question

2. An immigration agent at an airport, on an average, could process 14 entrants in one hour, if he was busy all the time. On an average, an entrant arrives at his station at every 5 minutes. The agent can be replaced by a more efficient specialist. The specialist can process 18 entrants in one hour. The specialist is paid $45 per hour whereas the current agent is paid $30 per hour. If an entrant’s time is considered to be worth $10 per hour, is it worth to replace the agent with the specialist? Note: Do hand calculations to answer this question.

Explanation / Answer

Number of entrents per hour = 60 minutes/5 minutes = 12 Entrenets Immigration Agent Specialist Agent Number of entrents processed per one hour 14 18 Number of entrents per hour 12 12 Actual processed entrents per hour (Which of the above is lower) 12 12 Worth of each entrents $10.00 $10.00 Total worh of entrents $120.00 $120.00 Less: Paid to Agent $30.00 $45.00 Savings $90.00 $75.00 Since the savings from the agent or higher than the savings of Specilist agent ($90>$75) Therefore, It is not worth to replace the agent with the specialist.

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