Microtech Incorporated has decided to package its cell phone in a smaller, recyc
ID: 3184963 • Letter: M
Question
Microtech Incorporated has decided to package its cell phone in a smaller, recyclable package. Additionally, the company will discontinue the practice of shipping each phone with a 250-page user and instead will make the manual available online. These changes will result in a lighter, but more difficult package for shippers to handle. The weight of each packaged phone has dropped from 1 pounds to 0.8 pounds as a result of these changes and the freight classification has worsened from 65 to 70. Use the table below to calculate the difference in Microtech's monthly shipping charges company ships 12,500 phones per month. Click the icon to view the matrix of weight breaks and freight class in dollars per hundredweight (cwt). Before the changes in packaging, shipping costs are Sper month. (Enter your response rounded to two decimal places.) More Info Matrix of Weight Breaks and Freight Class ($/cwt) ClassExplanation / Answer
Old weight: 1.5 lbs (not clear from question, so I'm assuming 1.5)
New weight : 0.8 lbs
Monthly shipping # - 12,500
Thus 12,500* 1.5 *23.31 ( old freight class of 65 and shipping class 65)
OLD
Total weight per shipment = 65 * 1.5 = 97.5
Rate of <500 lbs on class 65 = 48.23
In order to complete 12,500 # total shiplemts required is 12,500/65 = 192.31
Thus 192.31 * 48.23 = $9,275.11
NEW
Total weight per shipment = 70 * 0.8= 56
Rate of <500 lbs on class 70 = 51.34
In order to complete 12,500 # total shiplemts required is 12,500/65 = 178.57
Thus 192.31 * 51.34 = $9,873.19
Difference in shipping charges = 9873.19 - 9275.11 = $598.08