home / study / business / operations management / operations management question
ID: 384507 • Letter: H
Question
home / study / business / operations management / operations management questions and answers / microtech incorporated has decided to package its cell phone in a smaller, recyclable package....
Your question has been answered
Let us know if you got a helpful answer. Rate this answer
Question: Microtech Incorporated has decided to package its cell phone in a smaller, recyclable package....
Microtech Incorporated has decided to package its cell phone in a smaller, recyclable package. Additionally, the company will discontinue the practice of shipping each phone with a 250-page user manual and instead will make the manual available online. These changes will result in a lighter, but more difficult package for shippers to handle. The weight of each packaged phone has dropped from 1.5 pounds to 0.5 pounds as a result of these changes and the freight classification has worsened from 65 to 77.5. Use the table below to calculate the difference in Microtech's monthly shipping charges if the company ships 10,000 phones per month
QUESTION:
Before the changes in packaging, shipping costs are ____?__per month. (Enter your response rounded to two decimal places.)
After the changes in packaging, shipping costs are _____?___per month. (Enter your response rounded to two decimal places.)
Matrix of Weight Breaks and Freight Class ($/cwt) Class 50 500 (lbs) 25.73 27.71 29.69 31.46 33.48 36.08 38.93 41.92 45.2 1,000 (lbs) 18.19 19.59 20.99 22.25 23.67 25.51 27.53 29.64 31.96 2,000 (lbs) 17.28 18.62 19.95 21.14 22.49 24.24 26.15 28.17 30.38 5,000 (lbs) 13.19 14.2 15.22 16.12 17.16 18.49 19.95 21.48 23.17 10,000 (lbs) 11.81 13.06 14.31 15.2 16.46 17.89 19.68 21.29 23.08 220,000 (lbs) 7.85 8.69 9.52 10.11 10.94 11.9 13.09 14.15 15.35 500 (lbs) 60 65 70 77.5 85 92.5 100 21.24 22.88 24.52 25.98 27.65 29.79 32.15 34.61 37.33Explanation / Answer
Before changes
Total monthly volume = 1.5*10000 = 15000 lbs.
Applicable transportation rate = 15.2 $/cwt (refer weight breaks 10,000 (lbs) and class 65)
Total monthly transportation cost = 12.5*15000/100 = $ 1,875
Before the changes in packaging, shipping costs are ___1,875.00___ per month.
After changes
Total monthly volume = 0.5*10000 = 5000 lbs.
Applicable transportation rate = 18.49 $/cwt (refer weight breaks 10,000 (lbs) and class 65)
Total monthly transportation cost = 18.49*5000/100 = $ 924.5
After the changes in packaging, shipping costs are ___924.50___ per month.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.