Tony’s Income Tax Service is determining its staffing requirements for the next income tax season. Income tax preparers work 50 hours per week from January 15 through April 15 (assume four weeks per month). There are two major tasks: preparation of short forms and preparation of long forms. The time normally needed to prepare a short form is 15 minutes; long forms takes 50 minutes if all customer records are in order. Fifteen percent of customers using the long form have complicated problems that require approximately one-half hour of additional work. The usual mix of customers requiring long versus short forms is 40 to 60 percent. Preparers work at 85 percent efficiency, meaning that only 85 percent of their time is productive. Tony expects 1,000, 3,500, and 5,000 customers for each of the three months, respectively. How many preparers are needed each month to meet that demand?

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in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: