Problem 11-3 (Algo) A trucking company publishes the following rates: Shipment Weight Less than 500 pounds 500-999 pounds 1,000-4,999 pounds 5,000-9,999 pounds 10,000 pounds or more Cost per 100 Pounds $ 20.00 $ 18.00 $ 15.50 $ 14.00 $ 13.00 Click here for the Excel Data File Suppose you have 8 shipments to make, each of which weighs 940 pounds. The carrier offers to consolidate them into one shipment of 7,520 pounds but will charge an additional $250 (total) to do so. a. Calculate the total cost with or without consolidated shipment charge. b. Should you agree to consolidate the shipments?

Problem 11-3 (Algo) A trucking company publishes the following rates: Shipment Weight Less than 500 pounds 500-999 pounds 1,000-4,999 pounds 5,000-9,999 pounds 10,000 pounds or more Cost per 100 Pounds $ 20.00 $ 18.00 $ 15.50 $ 14.00 $ 13.00 Click here for the Excel Data File Suppose you have 8 shipments to make, each of which weighs 940 pounds. The carrier offers to consolidate them into one shipment of 7,520 pounds but will charge an additional $250 (total) to do so. a. Calculate the total cost with or without consolidated shipment charge. b. Should you agree to consolidate the shipments?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 2CE: Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An...

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