Table 13.11 The Neale Company Has Four Distribution Centers (A,B,C,and D)that Require

question 43

Multiple Choice

Table 13.11
The Neale Company has four distribution centers (A,B,C,and D) that require monthly shipments of 30,000,24,000,36,000,and 24,000 gallons of diesel fuel per month,respectively.Three wholesalers (1,2,and 3) are willing to supply up to 36,000,48,000 and 30,000 gallons,respectively.Total costs (in $) for both shipping and price per gallon follow.A transportation method tableau is provided below.
-Use the information in Table 13.11.Which of the following statements about this scenario is incorrect?

• A)A dummy warehouse is required to complete the analysis.
• B)It costs $2 per gallon to ship from Wholesaler 3 to Distribution Center D.
• C)It costs $2 per gallon to ship one gallon from Wholesaler 2 to Distribution Center C.
• D)It costs $2 per gallon to ship 20,000 gallons from Wholesaler 1 to Distribution Center D.

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Definitions:

Amortize

The process of gradually paying off debt through scheduled, systematic repayments of principal and interest.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, with the compounding occurring every month.

Monthly Payments

Monthly payments refer to amounts paid every month over a set period of time to repay a debt or subscription, often used in loans or service agreements.

Compounded Quarterly

The process of calculating interest on both the initial principal and accrued interest from previous periods on a quarterly basis.