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Suppose Jones Company has orders from three customers located in the same market area. One order...

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General Management

Suppose Jones Company has orders from three customers located inthe same market area. One order has a total weight of 3,600 pounds,the second weighs 8,300 pounds, and the third weighs 12,100 pounds.The transportation carrier quotes a freight rate of $20 perhundredweight (or cwt.) for direct shipment to the customer forshipments weighing 1,000 to 4,999 pounds, $18 per cwt. for ordersweighing 5,000 to 9,999 pounds, and $16 for shipments weighingbetween 10,000 and 15,000 pounds. Alternatively, the carrier’s ratefor shipments weighing more than 20,000 pounds is $13.00 per cwt.However, if the orders are combined into one consolidated shipment,the carrier will charge $260 for each stop it is required to make.Calculate the total cost with or without consolidated shipmentcharge.

a) total cost using separate shipments

b) total cost using consolidated shipment

Answer & Explanation Solved by verified expert
4.4 Ratings (698 Votes)
Order weights respectively one order 3600 pounds second order 8300 pounds third order 12100 pounds Transportation costs are as follows 1000 to 4999 pounds 20100pounds 5000 to 9999 pounds 18100 pounds 10000 to 15000 pounds 16100 pounds a cost of transportation for    See Answer
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