Professor Gaffney needs to ship 1,800 pounds of laboratory equipment to a collea
ID: 462981 • Letter: P
Question
Professor Gaffney needs to ship 1,800 pounds of laboratory equipment to a colleague across country. Due to limited departmental funds, Dr. Gaffney would like to minimize total shipment costs. Currently, the freight classification is 85. However, a local equipment manufacturing company is willing to specially package the equipment in order to drop the freight classification to 50. Use the table below to calculate the break-even cost of using this service.
In order to break-even, Dr. Gaffney is willing to spend $_____ on special packaging. (Enter your response rounded to two decimal places.)
Matrix of Weight Breaks and Freight Class ($/cwt) ClassExplanation / Answer
The cost of transportation at 85 = 34.17 *1800 = 61506
The cost of transportation at 50 = 23.06*1800 = 41508
The benefit on transporting at 50 instead 85 = 61506-41508= 19998
The cost he can spend on packaging break even = 19998/1800 =$11.11
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