Table 13.5 Paul's Pretzels Manufactures and Distributes Gourmet Pretzels for Limited Retail

question 5

Multiple Choice

Table 13.5
Paul's Pretzels manufactures and distributes gourmet pretzels for limited retail sales. Paul has determined the "demand points" and their relative locations as follows:

-Use the information in Table 13.5. If a facility were to be located at (15,15) , what would be the load-distance score? (Assume rectilinear distance.)

• A) less than or equal to 5,000
• B) more than 5,000 but less than or equal to 5,200
• C) more than 5,200 but less than or equal to 5,400
• D) more than 5,400

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Definitions:

Variable Cost

Costs that vary directly with the level of production, such as raw materials, labor, and energy used in the manufacturing process.

Long Run

A period in economics during which all factors of production and costs are variable, allowing for the full adjustment to changes.

Fixed Cost

Expenses that do not change with the level of output production, such as rent, salaries, or equipment leases.

Output

The quantity of a product or service produced within a given period by a company, sector, or economy.