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BURGER DOODLE IS A FAST-FOOD RESTAURANT THAT PROCESSES AN AVERAGE OF 680 FOOD ORDERS EACH DAY.

BURGER DOODLE IS A FAST-FOOD RESTAURANT THAT PROCESSES AN AVERAGE OF 680 FOOD ORDERS EACH DAY.

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Problem 3. Burger Doodle is a fast-food restaurant that processes an average of 680 food orders each day. The average cost of each order is $6.15. Four percent of the orders are incorrect, and only 10% of the defective orders can be corrected with additional food items at an average cost of $1.75. The remaining defective orders have to be thrown out.a. Compute the average product cost.b. In order to reduce the number of wrong orders, Burger Doodle is going to invest in a computerized ordering and cash register system. The cost of the system will increase the average order cost by $0.05 and will reduce defective orders to 1%. What is the annual net effect of this quality improvement initiative?c. What other indirect effects on quality might be realized by the new computerized order system?


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