Every week BosssMustang of Oakland, California, receives shipments from 5 different suppliers in the Los Angeles area. Each supplier's order weighs, on average, 500 pounds. A direct truck shipment from Los Angeles to Oakland costs $500. A Los Angeles 3PL provider has offered to run a consolidation warehousing operation for BosssMustang. The 3PL provider would pick up the shipments from each supplier, process them, and put them on a single truck bound for Oakland. The pickup fee would be $100 per supplier, and the warehousing cost would be $35 per hundred-weight. The direct truck shipment cost would be the same as before, $500. a. Assume that each truck is capable of carrying 10,000 pounds. The total cost of the single-order shipments from all of BosssMustang's suppliers is $ 2500 per week. (Enter your response as a whole number.) The average truck utilization level for the single-order shipment option is 5 %. (Enter your response rounded to the nearest whole number.) b. The total cost of the consolidation warehousing option is $ 18500 per week. (Enter your response as a whole number.)

Every week BosssMustang of Oakland, California, receives shipments from 5 different suppliers in the Los Angeles area. Each supplier's order weighs, on average, 500 pounds. A direct truck shipment from Los Angeles to Oakland costs $500. A Los Angeles 3PL provider has offered to run a consolidation warehousing operation for BosssMustang. The 3PL provider would pick up the shipments from each supplier, process them, and put them on a single truck bound for Oakland. The pickup fee would be $100 per supplier, and the warehousing cost would be $35 per hundred-weight. The direct truck shipment cost would be the same as before, $500. a. Assume that each truck is capable of carrying 10,000 pounds. The total cost of the single-order shipments from all of BosssMustang's suppliers is $ 2500 per week. (Enter your response as a whole number.) The average truck utilization level for the single-order shipment option is 5 %. (Enter your response rounded to the nearest whole number.) b. The total cost of the consolidation warehousing option is $ 18500 per week. (Enter your response as a whole number.)

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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