An Airline Has One Employee Work the Counter

question 35

Multiple Choice

An airline has one employee work the counter.A customer arrives on the average of once every 3 minutes,and it takes on average 2 minutes to process the transaction.What is the probability that a customer must wait for service in the queue?

• A) 0%
• B) 33%
• C) 66%
• D) 100%

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Definitions:

Net Operating Income

An indicator of a firm's earnings generated from its principal business activities, not accounting for interest and tax deductions.

Variable Costing

An accounting method that includes only variable production costs in product costs, excluding fixed overhead.

Absorption Costing

An accounting strategy that considers every manufacturing expense, including direct materials, direct labor, and overhead costs (both variable and fixed), in determining a product’s cost.

Income Statement

A financial statement that shows a company's revenue, expenses, and profits over a specific period, usually a fiscal quarter or year.