The Shipping Company Manager Wants to Determine the Best Routes

question 57

Multiple Choice

The shipping company manager wants to determine the best routes for the trucks to take to reach their destinations. This problem can be solved using the

• A) shortest route solution technique.
• B) minimal spanning tree solution method.
• C) maximal flow solution method.
• D) minimal flow solution method.

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Definitions:

Variable Expense

Expenses that vary directly with the amount of production or the degree of operational activity.

Contribution Margin Ratio

The percentage of each sale that exceeds the variable costs of production.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the cushion a business has before it incurs a loss.