A Bottling Company Offers Three Kinds of Delivery Service -

question 65

Multiple Choice

A bottling company offers three kinds of delivery service - instant, same day and within five days. The profit per delivery varies according to the kind of delivery. The profit for an instant delivery is less than the other kinds because the driver has to go directly to a grocery store with a small load and return to the bottling plant. To find out what effect each type of delivery has on the profit picture, the company summarized the data in the following table based on deliveries for the previous quarter. What is the weighted mean profit per delivery?

• A) $72
• B) $110
• C) $142
• D) $97
• E) $66.67

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Definitions:

Total Costs

The sum of all expenses incurred by a business in producing goods or services, including both fixed and variable costs.

Profit Maximizing

The process or strategy employed by a firm to determine the price, output level, or operational scale that leads to the highest possible profit.

Efficient Level

The optimum point at which a particular function, operation, or activity is most effective or produces the best results with the least waste of resources.

Society's View

The collective opinions, beliefs, and values held by the majority of people in a society about a particular topic.