Problem 11-8 A trucking company publishes the following rates: Shipment Weight C
ID: 427507 • Letter: P
Question
Problem 11-8 A trucking company publishes the following rates: Shipment Weight Cost per 100 Pounds Less than 500 lbs. $15.00 500–999 lbs. $13.00 1,000–4,999 lbs. $10.50 5,000–9,999 lbs. $9.00 10,000 lbs. or more $8.00 Suppose you have 10 shipments to make, each of which weighs 700 pounds. The carrier offers to consolidate them into one shipment of 7,000 pounds but will charge an additional $200 (total) to do so. A trucking company publishes the following rates: a. Calculate the total cost with or without consolidated shipment charge. (Round your answers to 2 decimal places.) b. Should you agree to consolidate the shipments? Yes No
Explanation / Answer
a. Without Consolidation:
= 10 * (7 * 13)
= 10 * 91
= 910
With Consolidation:
= 70 * 9
= 630
Additional 200 which will.make it 630 + 200
= 830
b. Yes, consolidation is required as it will lower the cost of process.