A courier company handles seven basic types of letters and postcards: third clas

Question

A courier company handles seven basic types of letters and postcards: third class, second class, first class, airmail, special delivery, registered mail and certified mail. The volume of shipments during the last year is given in the following table:

Type of Mail Ounces sent(in millions) Price per ounce (dollars)

Third Class 16,400 $0.05

Second Class 24,100                                                0.08

First Class 77,600 0.13

Aerial 1,900 0.17

Special delivery 1,300 0.35

Registered 750 0.40

Certificate 800 0.45

What is the average revenue per ounce of services during the year?
Do it manually without use of excel

Explanation / Answer

Average Revenue per ounce would be Total Revenue/ Total Ounces shipped

Total revenue = 16,400* .05 + 24,100* .08 + 77600 * .13 + 1900 * .17 + 1300* .35 + 750* .4 +800 * .45

=820+1928 + 10088+323+ 455+ 300 + 360 =14274 million dollars

Total ounces shipped = 16400 +24100 + 77600 +1900 +1300 +750 +800=122850 million ounces

So, average revenue per ounce of services is 14274/122850 $/ounce = .11619 $/ounce

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