-Refer to the Shipping Costs for the Terra Cotta Company

question 3

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 shipping costs from Danbury to Lakeland are $10,908.
• B)The shipping costs from Aberdeen to Lakeland are $1,695.
• C)The shipping costs from Aberdeen to Madison are $18,414.
• D)The shipping costs from Fairview to Madison are $18,414.

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Definitions:

Agent

A party primarily engaged to act on behalf of and for the benefit of another party or parties (the principal(s)) which therefore does not control the investee when it exercises its decision-making authority.

Variable Returns

Returns from an investment that fluctuate over time due to market conditions or other factors.

Economies of Scale

Cost advantages that entities experience as their operational size or volume increases, leading to reduced costs per unit of output.

Remuneration

The compensation a person receives in return for performing work or services, including wages, salaries, and benefits.