The Flows in a General Minimum Cost Network Flow Model

question 43

True/False

The flows in a general minimum cost network flow model (MCNFM)all have to be from "left to right"; that is,from supply points to demand points.

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Definitions:

Operating Income

Income generated from regular business operations, excluding any investment income, taxes, or extraordinary items.

Selling Price

The amount of money charged for a product or service.

Net Operating Income

An accounting term that represents the revenue minus the cost of goods sold and operating expenses, excluding taxes and interest.

Degree Of Operating Leverage

A measure, at a given level of sales, of how a percentage change in sales will affect profits. The degree of operating leverage is computed by dividing contribution margin by net operating income.