-Refer to the Shipping Costs for the Terra Cotta Company

question 72

Multiple Choice

-Refer to the shipping costs for The Terra Cotta Company.Solve the transportation problem using Excel Solver.(Remember that in balanced transportation problems all constraints-except the non-negativity constraints of the decision variables-should be set as an equal-to (=) sign in the Excel Solver dialogue.) At the optimum solution,which of the following statements is true?

• A)The lowest non-zero shipment is from Aberdeen to Lakeland.
• B)The lowest non-zero shipment is from Birmingham to Kalamazoo.
• C)The lowest non-zero shipment is from Cairo to Winston.
• D)The lowest non-zero shipment is from Fairview to Navarre.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a state of market equilibrium.

Equilibrium Price

The cost at which the amount of a product that buyers want to purchase matches the amount that sellers are willing to supply, creating equilibrium in the market.

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Total Variable Costs

The sum of all costs that vary directly with the level of production, such as materials and labor directly involved in the production process.