Evaluate the current China/Taiwan logistics costs.Assume a current total volume of 190,000 CBMand that 89 percent is shipped direct from the supplierplants in containers. Use the data from the caseand assume that the supplier-loaded containers are85 percent full. Assume that consolidation centersare run at each of the four port locations. The consolidationcenters only use 40-foot containers andi ll them to 96 percent capacity. Assume that it costs$480 to ship a 20-foot container and $600 to ship a40-foot container. What is the total cost to get thecontainers to the United States? Do not include U.S.port costs in this part of the analysis.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Evaluate the current China/Taiwan logistics costs.
Assume a current total volume of 190,000 CBM
and that 89 percent is shipped direct from the supplier
plants in containers. Use the data from the case
and assume that the supplier-loaded containers are
85 percent full. Assume that consolidation centers
are run at each of the four port locations. The consolidation
centers only use 40-foot containers and
i ll them to 96 percent capacity. Assume that it costs
$480 to ship a 20-foot container and $600 to ship a
40-foot container. What is the total cost to get the
containers to the United States? Do not include U.S.
port costs in this part of the analysis.
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