Microtech Incorporated has decided to package its cell phone in a smaller, recyc
ID: 421352 • 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 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 1.1 pounds to 0.4 pounds as a result of these changes and the freight classification has worsened from 60 to 77.5. Use the table below to calculate the difference in Microtech's monthly shipping charges if the company ships 12,500 phones per month Click the icon to view the matrix of weight breaks and freight cass in dolars per hundredweight on Before the changes in packaging, shipping costs are S 1309 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.)Explanation / Answer
First answer+ 12500x1.1=13750 total weight of shipment
Class 60 weight <=20000=9.52 Therefore, 13750x9.52=$130900
The total weight of phone with changed packing=0.4 lbs
The total number of phones shipped+12500
Total weight of shipment=12500x0.4=5,000 lbs
Classification=77.5 subsequent rate applicable for 5000 lbs=18.49
Therefore, shipping costs=5000x18.49=$92,450