A Restaurant Currently Has Two Cooks and Ten Waiters

question 66

Multiple Choice

A restaurant currently has two cooks and ten waiters.Cooks earn $10 an hour and waiters earn $5 an hour.The last cook added 40 meals served to total output,while the last waiter added 25 meals served to total output.In order to maximize the number of meals served with a fixed budget,the manager should

• A)continue to use two cooks and ten waiters because output is being maximized.
• B)should use more cooks and fewer waiters because cooks are more productive than waiters.
• C)should use more cooks and fewer waiters because productivity per dollar is higher for cooks than for waiters.
• D)should use more waiters and fewer cooks because waiters are paid less than cooks.
• E)should use more waiters and fewer cooks because productivity per dollar is higher for waiters than for cooks.

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Definitions:

Total Logistics Cost

The cumulative expenses associated with planning, implementing, and controlling the efficient flow and storage of goods, services, and related information from point of origin to point of consumption.

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Order Processing

The series of actions or steps taken by a business to fulfill and ship orders to customers.

Inventory Costs

Expenses associated with holding and managing goods or materials that a company plans to sell, including storage, insurance, and depreciation.