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Distance, in miles 0-200 201-400 401-600 601-800 801-1000 Price per 100 lbs $100 $120 $200 $240 $400 The premium for 3-5 day shipping is 20%. What is the cost to ship 2,000 lbs of goods from Chicago to Atlanta (700 miles) using 3-5 day shipping? B. $6,720 A. $9,600 C. $4,800 D. $5,760

Distance, in miles 0-200 201-400 401-600 601-800 801-1000 Price per 100 lbs $100 $120 $200 $240 $400 The premium for 3-5 day shipping is 20%. What is the cost to ship 2,000 lbs of goods from Chicago to Atlanta (700 miles) using 3-5 day shipping? B. $6,720 A. $9,600 C. $4,800 D. $5,760

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### Shipping Cost Problem #### Table: Shipping Rates Based on Distance | Distance, in miles | 0-200 | 201-400 | 401-600 | 601-800 | 801-1000 | |--------------------|-------|---------|---------|---------|----------| | Price per 100 lbs | $100 | $120 | $200 | $240 | $400 | --- #### Problem Statement The premium for 3-5 day shipping is 20%. What is the cost to ship 2,000 lbs of goods from Chicago to Atlanta (700 miles) using 3-5 day shipping? #### Options: A. $9,600 B. $6,720 C. $4,800 D. $5,760 --- **Explanation of Calculation:** 1. Determine the base shipping rate for 700 miles. - 700 miles falls into the 601-800 miles category. - The price for this distance is $240 per 100 lbs. 2. Calculate the total weight cost. - 2,000 lbs divided by 100 lbs = 20 units of 100 lbs. - Base cost = 20 * $240 = $4,800. 3. Calculate the cost including the premium for 3-5 day shipping. - Premium = 20% of base cost = 0.20 * $4,800 = $960. - Total cost with premium = $4,800 + $960 = $5,760. Hence, the correct cost to ship 2,000 lbs of goods for 700 miles using 3-5 day shipping is **Option D: $5,760**.
Transcribed Image Text:### Shipping Cost Problem #### Table: Shipping Rates Based on Distance | Distance, in miles | 0-200 | 201-400 | 401-600 | 601-800 | 801-1000 | |--------------------|-------|---------|---------|---------|----------| | Price per 100 lbs | $100 | $120 | $200 | $240 | $400 | --- #### Problem Statement The premium for 3-5 day shipping is 20%. What is the cost to ship 2,000 lbs of goods from Chicago to Atlanta (700 miles) using 3-5 day shipping? #### Options: A. $9,600 B. $6,720 C. $4,800 D. $5,760 --- **Explanation of Calculation:** 1. Determine the base shipping rate for 700 miles. - 700 miles falls into the 601-800 miles category. - The price for this distance is $240 per 100 lbs. 2. Calculate the total weight cost. - 2,000 lbs divided by 100 lbs = 20 units of 100 lbs. - Base cost = 20 * $240 = $4,800. 3. Calculate the cost including the premium for 3-5 day shipping. - Premium = 20% of base cost = 0.20 * $4,800 = $960. - Total cost with premium = $4,800 + $960 = $5,760. Hence, the correct cost to ship 2,000 lbs of goods for 700 miles using 3-5 day shipping is **Option D: $5,760**.
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