Question

In: Statistics and Probability

transport company has two types of trucks, Type A and Type B. Type A has a...

transport company has two types of trucks, Type A and Type B. Type A has a refrigerated capacity of 20 m3 and a non-refrigerated capacity of 40 m3 while Type B has the same overall volume with equal sections for refrigerated and non-refrigerated stock. A grocer needs to hire trucks for the transport of 3,000 m3 of refrigerated stock and 4,000 m3 of non-refrigerated stock. The cost per kilometer of Type A is $30, and $40 for Type B. How many trucks of each type should the grocer rent achieve the minimum total cost? Determine the feasible solution using graphical analysis.

Solutions

Expert Solution


Related Solutions

Q / The National Dairy Company produces two types of milk (type A and type B),...
Q / The National Dairy Company produces two types of milk (type A and type B), each type needs three operations to complete its production (sterilization and packaging) required to design an engineering problem and complete the formulation of the question and the problem so that it includes all the required information: 1- Determine the time of manufacturing the type A product for the three manufacturing processes (sterilization, packing and packaging) so that the manufacturing time for this product is...
Suppose there are two types of consumers: Type A and Type B. The demands for a...
Suppose there are two types of consumers: Type A and Type B. The demands for a monopolist’s product for each type of consumers are given by: Type A: Q = 90 – 2P Type B: Q = 60 – 4P Assume the marginal cost of production is constant and MC = 4, and there are no fixed costs. a) Suppose the firm is unable to distinguish between the two types of consumers, and therefore cannot engage in price discrimination. Sketch...
Suppose there are two types of consumers: Type A and Type B. The demands for a...
Suppose there are two types of consumers: Type A and Type B. The demands for a monopolist’s product for each type of consumers are given by: Type A: Q = 90 – 2P Type B: Q = 60 – 4P Assume the marginal cost of production is constant and MC = 4, and there are no fixed costs. a)Suppose the firm is unable to distinguish between the two types of consumers, and therefore cannot engage in price discrimination. Sketch the...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $200,100 per year, consisting of $0.21 per ton variable cost and $150,100 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 58% of the Transport Services Department’s capacity and the Southern Plant...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $192,500 per year, consisting of $0.24 per ton variable cost and $142,500 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 65% of the Transport Services Department’s capacity and the Southern Plant...
Hoi Chong Transport, Ltd. operates a fleet of delivery trucks in Singapore. The company has determined...
Hoi Chong Transport, Ltd. operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 150,000 kilometres during a year, the average operating cost is 13.1 cents per kilometre. If a truck is driven only 75,000 kilometres during a year, the average operating cost increases to 15.0 cents per kilometre. (The Singapore dollar is the currency used in Singapore.) Required: 1. Using the high-low method, estimate the variable and fixed cost elements of...
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined...
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 108,000 kilometers during a year, the average operating cost is 11.9 cents per kilometer. If a truck is driven only 72,000 kilometers during a year, the average operating cost increases to 13.7 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet...
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined...
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. (Do not...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $255,000 per year, consisting of $0.21 per ton variable cost and $205,000 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 65% of the Transport Services Department’s capacity and the Southern Plant...
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined...
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 102,000 kilometers during a year, the average operating cost is 11.3 cents per kilometer. If a truck is driven only 68,000 kilometers during a year, the average operating cost increases to 12.9 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT