2. A manufacturer has been shipping his product (moderately heavy machines).mounted only on skids without complete crating. To avoid crating he must ship infreight cars which contain only his machines. To do this he must pay freight on acar capacity load of 42 tons regardless of whether or not the car is completely full.In the past he actually has shipped only 30 tons in each car. The car load freightrate is P4.10 per hundred pounds. If the machines are crated so that they can beshipped in mixed car lots, along with other merchandise, they can be shipped ata rate of P4.20 per hundred pounds with the freight bill computed only on theactual weight shipped. The cost of crating would be P25.00 per machine andwould increase the shipping weight from 1,200- 1220 pounds per machine. Whichprocedure should be followed? (1 ton= 2,200 lbs.)

Opportunity costs are readily neglected because they are, by definition, invisible. Acknowledging…

Answered: . A manufacturer has been shipping his…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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