A Small Flower Shop Takes Orders by Phone and Then

question 14

Essay

A small flower shop takes orders by phone and then one of the staff florists is assigned
to prepare the arrangement. The time it takes to process phone orders is normally
distributed with a mean of 6 minutes and a standard deviation of 2.5 minutes. The time it
takes for an arrangement to be completed is normally distributed with a mean of 35
minutes and a standard deviation of 8.6 minutes.
A. What are the mean and standard deviation for the total time to process a phone order
and complete the floral arrangement at this flower shop?
b. What is the probability that it will take more than 50 minutes to process a phone order
and complete the floral arrangement at this flower shop?

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Definitions:

Product Costs

Costs that are directly incurred in the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses that are not directly tied to production activities and are expensed in the period they are incurred, such as administrative salaries and marketing costs.

Variable Costs

Costs that vary directly with the level of production or volume of output, such as materials and labor directly involved in production.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed costs and contribute to profit.