Asingle channel queuing system has an average service time of 16 minutes per customer, which is exponentially distributed. the manager is thinking of converting to a system with a constant service time of 16 minutes. the arrival rate will remain the same. the effect will be to: a. increase utilization b. decrease utilization c. increase the average waiting time d. decrease the average waiting time e. not have any effect since the service time is unchanged.

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.