Question

In: Economics

Previously, the given statement is "If the engines are crated so that they can be shipped...

Previously, the given statement is "If the engines are crated so that they can be shipped at the rate of $3.50 per kilogram with the freight bill computed only on the actual weight shipped." the answer is $630 per engine.(please do show solutions how did it arrived to that answer) Likewise, how about if this is now the situation (stated below)?

JRT Motors Inc. has been shipping its Suzuki engines in containers to avoid the necessary crating of the engines.

JRT Motors Inc. will pay freight on container load of 40 tons, regardless of whether or not the container is completely filled with engines.

Record shows that due to engine size, JRT Motors Inc. has shipped only 30 tons per container.

Freight of container cost $3.00 per kilogram.

If the engines are crated so that they can be shipped at the rate of $3.50 per kilogram with the freight bill computed only on the actual weight shipped.

The cost of crating would be $50 per engine and would increase the shipping weight from 1500 kg to 1520 kg per engine.

a. How much more economical shipping the engine in crates, than in containers?
b. Should JRT Motors Inc. ship the engines in crates or in containers?


Please show a clear, complete and step-by-step solutions as well as essential formulas to be considered.

Solutions

Expert Solution

Actual weight shipped = 1500 kg per engine

Cost of crating = $50 per engine

Crating increase shipping to 1520 kg per engine

Freight of container cost $3.00 per kilogram.

If the engines are crated so that they can be shipped at the rate of $3.50 per kilogram with the freight bill computed only on the actual weight shipped.

a. (1500 - 50 ) - (( 1520 × 3.50 ) - ( 1500 × 3 ))

  = 1450 - 820

  =   $630 per engine

b. JRT Motors Inc. ship the engines in containers because otherwise in crates it has to bear freight and crating charges.


Related Solutions

Acme typically produces three engines per day. Some of the engines pass the quality control inspection on the first try and are ready to be shipped; others need to be retooled.
Acme typically produces three engines per day. Some of the engines pass the quality control inspection on the first try and are ready to be shipped; others need to be retooled. The probability of an engine needing further work is 0.05. If the engine is ready to be shipped, the company makes a profit of $10,000. If it needs to be retooled, it ultimately costs the company $2000. (a) Find the pmf of the number of engines that are ready...
Answer the given statements as True or False. If the statement is false, correct it so...
Answer the given statements as True or False. If the statement is false, correct it so it becomes a true statement. 1. The neutral axis can be found at a distance ‘y’ (where y>0) from the centroidal axis of a member. 2. The centre of curvature can be found at a radial distance (rho) from the neutral axis of a member in pure bending. 3. When developing generalized equations for stress transformations, we must consider stresses on only the horizontal...
The reservoir temperatures for heat engines A through D are given below. Rank the engines in...
The reservoir temperatures for heat engines A through D are given below. Rank the engines in order of increasing efficiency. Indicate ties where appropriate. Engine A B C D TT hh (K)(K) 400 440 800 1240 TT cc (K)(K) 200 420 600 1020 Rank from largest to smallest. To rank items as equivalent, overlap them._
Solar Engines manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 105...
Solar Engines manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 105 units have been made by customers requesting credit. The variable cost is $8,400 per unit, and the credit price is $10,250 each. Credit is extended for one period. The required return is 1.2 percent per period and the probability of default is 15 percent. Assume the number of repeat customers is affected by the defaults. In other words, 30 percent of the customers who...
In how many ways n distinct balls can be given to k children so that no...
In how many ways n distinct balls can be given to k children so that no child gets more than 3 balls?
a) In how many ways n distinct ball can be given to k children so that...
a) In how many ways n distinct ball can be given to k children so that no child gets more than 3 balls? b) What happens if the balls are indistinguishable?
Classical Mechanics problem: See if you can prove the so-called virial theorem. This is a statement...
Classical Mechanics problem: See if you can prove the so-called virial theorem. This is a statement that relates the average kinetic energy of a stable system to the potential energy of the system. It applies when the force between two particles of the system has a corresponding potentual energy U of the form U = kr^n, where r is the separation of the particles and n is some real number. So, suppose a mass m moves in a circular orbit...
The following table repeats the annual total returns on the MSCI Germany Index previously given and...
The following table repeats the annual total returns on the MSCI Germany Index previously given and also gives the annual total returns on the JP Morgan Germany five- to seven-year government bond index (JPM 5–7 Year GBI, for short). During the period given in the table, the International Monetary Fund Germany Money Market Index (IMF Germany MMI, for short) had a mean annual total return of 4.33 percent. Use that information and the information in the table to answer the...
Raising Foreign Capital can be difficult given global accounting diversity ( is this statement true or...
Raising Foreign Capital can be difficult given global accounting diversity ( is this statement true or false) course : international accounting.
What are the positive economic arguments for regional integration (European Union, USMCA - previously NAFTA)? Given...
What are the positive economic arguments for regional integration (European Union, USMCA - previously NAFTA)? Given these arguments, why did Trump decide to reform NAFTA as USMCA, and the British) electorate decide to leave the E.U. (Brexit)?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT