Microtech Incorporated has decided to package its cell phone in a smaller, recyc

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 manual 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

1.5 pounds to 0.5 pounds as a result of these changes and the freight classification has worsened from 60 to 92.5. Use the table below to calculate the difference in Microtech's monthly shipping charges if the company ships 10,000 phones per month.

Please answer questions below thank you

Before the changes in packaging, shipping costs are ___?___per month. (Enter your response rounded to two decimal places.)

After the changes in packaging, shipping costs are ___?_____per month. (Enter your response rounded to two decimal places.)

Thus, the new packaging will raise shipping costs by ____?_____per month. (Enter your response rounded to two decimal places.)

Matrix of Weight Breaks and Freight Class ($/cwt) Class 50 500 (lbs) 30.87 33.25 35.63 37.75 40.18 43.29 46.71 50.3 54.24 1,000 (lbs) 21.83 23.51 25.19 26.69 28.4 30.61 33.03 35.57 38.35 2,000 (lbs) 20.74 22.34 23.94 25.36 26.99 29.09 31.38 33.8 36.45 5,000 (lbs) 15.82 17.04 18.26 19.34 20.59 22.19 23.94 25.78 27.8 220,000 (lbs) 9.42 10.42 11.42 12.13 13.13 14.27 15.71 16.98 18.41 500 (lbs) 10,000 (lbs) 14.17 15.67 60 65 70 77.5 85 92.5 100 25.49 27.45 29.42 31.18 33.17 35.75 38.57 41.54 44.79 18.24 19.75 21.47 23.62 25.54 27.69

Explanation / Answer

The 10000 phones are sent in a bulk

So weight total 10000*1.5 pounds = 15000 pounds in classification 60.

So 17.17

The 10000 phones are sent in a bulk

So weight total 10000*0.5 pounds = 5000 pounds in classification 92.5.

So 25.78

So the increase =

8.61

Old Approach 1 Approach 2 V volume 15000 units 10000 R rate 17.17 Rate 23.94 (V*R) Total 257550.00 Total 239400.00 New V volume 5000 units 10000 R rate 25.78 Rate 41.54 (V*R) Total1 128900.00 Total 415400.00 Difference -128650.00 176000.00

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