If a Manager Increases System Utilization (Assuming No Change in the Customer

question 45

Multiple Choice

If a manager increases system utilization (assuming no change in the customer arrival rate) what happens to the customer waiting time?

• A)It increases exponentially.
• B)It increases proportionally.
• C)It decreases proportionally.
• D)It decreases exponentially.
• E)No change.

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Definitions:

Net Operating Income

The profit generated from a company's everyday operations, calculated by subtracting operating expenses from operating income.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributing to covering fixed costs and generating profit.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Dollar Sales Volume

The total revenue generated from the sale of goods or services, expressed in monetary terms.