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

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

Quizplus · Accepted Answer

To calculate the weighted mean profit per delivery, we need to use the formula:
(sum of (profit per delivery x number of deliveries))/(total number of deliveries)
Using the data from the table:

(40 x 200 + 120 x 400 + 150 x 600)/1200 = $97

Therefore, the weighted mean profit per delivery is $97.

As for the best choice(s), it depends on the company's priorities. If the company wants to maximize profit, then they should choose the delivery service with the highest profit per delivery, which is same day. However, if the company wants to balance profit and customer satisfaction, then offering all three delivery services could be the best option as it provides options to cater to different customer needs.

A Bottling Company Offers Three Kinds of Delivery Service: Instant