A bottling company offers three kinds of delivery service - instant, same day and within five days. The profit per delivery varies according to the kind of delivery. The profit for an instant delivery is less than the other kinds because the driver has to go directly to a grocery store with a small load and return to the bottling plant. To find out what effect each type of delivery has on the profit picture, the company summarized the data in the following table based on deliveries for the previous quarter. What is the weighted mean profit per delivery?
A) $72
B) $110
C) $142
D) $97
E) $66.67

Question

A bottling company offers three kinds of delivery service - instant, same day and within five days. The profit per delivery varies according to the kind of delivery. The profit for an instant delivery is less than the other kinds because the driver has to go directly to a grocery store with a small load and return to the bottling plant. To find out what effect each type of delivery has on the profit picture, the company summarized the data in the following table based on deliveries for the previous quarter.  What is the weighted mean profit per delivery?
A) $72 
B) $110 
C) $142 
D) $97 
E) $66.67

Quizplus · Accepted Answer

To find the weighted mean profit per delivery, we need to multiply the profit per delivery by the number of deliveries for each type of service, sum up the results and divide by the total number of deliveries:

Weighted mean profit per delivery = [(20 x 60) + (40 x 400) + (50 x 200)] / (60 + 400 + 200) = $96,000 / 660 = $145.45

Rounding to the nearest dollar, the correct answer is D) $97.

Therefore, the best choice is D) only.

A Bottling Company Offers Three Kinds of Delivery Service -