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Paragraph 4. Chippewa River Banking Company has ten automatic teller machines (ATMs) spread throughout the ity maintained by the ATM Department. You have the task of determining the cost of operating each machine. Management willuse the information you develop, along with other information pertaining to the volume and type of transactions at each machine, to evaluate the desirability of continuing to operate each machine and/or changing security arrangements for a particular The ATM Department consists of six employees: a supervisor, a head cashier, two associate cashiers and two maintenance personnel. The ATM department is responsible for two main activities: daily trips to restock the machines, and maintenance of the machines. The associate cashiers make between two and four daily trips to each machine to collect and replenish cash and to replenish supples. Costs associated with these daily trips are driven by the number of trips made. When a problem is reported, the two maintenance employees and one cashier are dispatched immediately The cashier removes all cash and transaction records, and the maintenance employees repair the machine. Costs associated with maintenance activities are driven by maintenance hours. Maintenance employees spend allof their time on maintenance-related activities. The associate cashiers spend approximately 50 percent of their time on maintenance-related activities and 50 percent on daily trips. The head cashier's time is divided, with 75 percent directly related to daily trips to each machine and 25 percent related to supervising cashiers on maintenance calls. The supervisor devotes 20 percent of the time to daily trips to each machine and 80 percent to the equal supervision of each employee. One third of the office space (and associated utilities) is used for maintenance activities, the remainder of the office space is accommodates the routine daily trips. In a normal month, the ATM department makes 720 routine daily trips, and logs 160 maintenance hours. Cost information for a recent month follows: Head cashier 3,000 acer F7 F10 F11 F12 Pause SysRA Break 6 8 0

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