The Time It Takes to Process Phone Orders in a Small

question 2

Multiple Choice

The time it takes to process phone orders in a small florist/gift shop is normally distributed With a mean of 6 minutes and a standard deviation of 1.24 minutes.What cutoff value would Separate the 2.5% of orders that take the most time to process?

• A)3.52 minutes
• B)4.76 minutes
• C)8.48 minutes
• D)10.01 minutes
• E)11.98 minutes

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the fixed versus variable costs structure of a company.

Depreciation Expense

Strategically spreading out the cost of a concrete asset over the course of its serviceable life.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volumes, reflecting the proportion of fixed costs in a company's cost structure.