In: Statistics and Probability
Suppose you have three shipments to make. One shipment has a weight of 4,700 pounds, the second weighs 9,400 pounds, and the third weighs 13,200 pounds. The transportation rates are: $21/cwt (1 cwt. = 100 pounds). for shipments of 1,000–5,000 pounds, $19/cwt. for 5,000–10,000 pounds, and $17/cwt. for shipments over 10,000 pounds. For consolidated shipments, there is a charge of $370 per stop.
a. Calculate the three individual shipments and consolidated shipments.
Three individual shipments=
Consolidated shipments=
b. What will be the cost difference if you choose to consolidate the shipments rather than to ship each one individually?
Amount=