Exhibit 13.1 The Following Questions Are Based on the Output Below

question 51

Multiple Choice

Exhibit 13.1
The following questions are based on the output below.
A store currently operates its service system with 1 operator. Arrivals follow a Poisson distribution and service times are exponentially distributed. The following spreadsheet has been developed for the system.
-The service times for a grocery store with one checkout line have a mean of 3 minutes and a standard deviation of 20 seconds. Customer arrivals at the checkout stand follow a Poisson distribution. What type of system is it?

• A) M/G/1
• B) M/D/1
• C) G/M/1
• D) M/M/1

---

Definitions:

Margin of Safety

The difference between actual or expected sales and the breakeven sales, indicating the amount by which sales can drop before the business incurs a loss.

Percentage of Sales

A financial metric or method that relates various income statement accounts as a percentage of sales, often used for analysis or forecasting.

Operating Leverage

A measure of how much a company's income can be affected by changes in sales volume, highlighting the ratio of fixed costs to variable costs.

Operating Leverage

An indicator of the degree to which net operating income responds to a specific percentage variation in sales revenue.