A Package Delivery Service Wants to Build a New Distribution

question 16

Multiple Choice

A package delivery service wants to build a new distribution center in Boise,Idaho.The location of the center needs to be in the vicinity of Interstate-84,Highway-55 and the Boise Airport.The following table provides the coordinates of these three sites and the number of weekly packages. The suggested coordinates for the new warehouse using the center of gravity method are

• A)x = 36.0 and y = 35.0
• B)x = 27.3 and y = 22.3
• C)x = 25.54 and y =24.4
• D)x = 27.5 and y = 35.5

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Definitions:

Warranty Expense

Costs a company expects to incur as a result of repairing or replacing products within the warranty period.

Warranty Costs

Expenses incurred by a company due to servicing or replacing products under warranty.

Premium Expense

The cost associated with purchasing insurance policies, which may be recognized periodically as an expense in financial statements.

Coupon Redemption

The process of a bond investor submitting a coupon to the issuer to receive the interest payment due.