1. Potential customers arrive at a full-service, two-pump gas station according to a Poisson process with rate 20 cars per hour. However, customers will only enter the station for gas if there are less than three cars at the two pumps. Suppose the amount of time required to service a car is exponentially distributed with a mean of five minutes.

(a) What fraction of the attendant’s time will be spent servicing cars?
(b) What fraction of potential customers are lost?

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: