Question

In McDonald’s restaurants with automated kiosks to take orders, the kiosks can take 2 orders per minute while employees can take 3 orders per minute. The rental rate on a kiosk is $6 per hour while the average compensation costs for an employee is $18 per hour. Should McDonald’s install more kiosks?

Answer 1

Given,

Number of orders taken by a kiosk in a minute = 2

Number of orders taken by a kiosk in an hour = 2 * 60 = 120

Rent paid on a kiosk = $6 per hour

Number of orders taken per dollar by a kiosk = 120/6 = 20 orders per dollar

Number of orders taken by an employee in a minute = 3

Number of orders taken by an employee in an hour = 3 * 60 = 180

The average compensation cost of an employee = $18 per hour

Number of orders taken per dollar paid by an employee = 180/18 = 10 orders per dollar

As the kiosk can take more orders per dollar spent on them compared to an employee, more kiosks should be installed by McDonald's.