Problem 3: Transportation Costing You have a shipment with the following charact
ID: 1193002 • Letter: P
Question
Problem 3: Transportation Costing
You have a shipment with the following characteristics.
Size: 18 pallets
Weight: 15,000 pounds
Distance: 2000 miles
Mode:
LTL
Solo Truckload
Rail
Airfreight
Rate:
$18/hundred-weight
$1.25/mile
$0.90/mile
$2.50/pound
A) What is the cost to send this shipment direct via LTL?
B) What is the cost to send this shipment direct via Solo Truckload?
C) What is the cost to send this shipment direct via Rail?
D) What is the cost to send this shipment direct via Airfreight?
Mode:
LTL
Solo Truckload
Rail
Airfreight
Rate:
$18/hundred-weight
$1.25/mile
$0.90/mile
$2.50/pound
Explanation / Answer
(A) Calculate the cost to send the shipment direct via LTL -
Rate = $18/hundred-weight
1 hundred-weight = 100 pounds
Weight = 15,000 pounds
Converting into Hundred-weight
Weight = 15,000/100 = 150 hundred-weight
Cost = Rate * Weight = $18 * 150 = $2,700
The cost to send the shipment direct via LTL is $2,700.
(B) Calculate the cost to send the shipment direct via Solo Truckload -
Rate = $1.25/mile
Distance = 2,000 miles
Cost = Rate * Distance = $1.25 * 2,000 = $2,500
The cost to send the shipment direct via Solo Truckload is $2,500.
(C) Calculate the cost to send the shipment direct via Rail -
Rate = $0.90/mile
Distance = 2,000 miles
Cost = Rate * Distance = $0.90 * 2,000 = $1,800
The cost to send the shipment direct via Rail is $1,800.
(D) Calculate the cost to send the shipment direct viaAirfreight -
Rate = $2.50/pound
Weight = 15,000 pounds
Cost = Rate * Weight = $2.50 * 15,000 = $37,500
The cost to send the shipment direct via Airfrieght is $$37,500.
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