Frigid-Transport is a small refrigerated shipping company based in California. Currently they have 5 refrigerated trucks and planning to expand as market for their services is on the rise. The fixed cost of their operations is $1,000,000 per year covering managerial, administrative, insurance, and other related expenses at their headquarters. Every truck has approximately $150,000 annual expense for lease, maintenance, and insurance. The variable cost of operation for each truck is $4.50 per mile covering fuel and truck driver’s pay. The maximum mileage capacity of each truck is 250,000 miles per year and current demand is 1,000,000 miles per year. The company charges $9.00 per mile for a fully loaded truck shipment. Construct an Excel cross tabulation table to find profit for this company using 6 to 14 trucks and mileage demand of 1,000,000, 1,500,000, 2,000,000, 2,500,000, 3,000,000, and 3,500,000 miles. Based on the table indicate the optimal number of trucks needed for above listed mileages
Frigid-Transport is a small refrigerated shipping company based in California. Currently they have 5 refrigerated trucks and planning to expand as market for their services is on the rise. The fixed cost of their operations is $1,000,000 per year covering managerial, administrative, insurance, and other related expenses at their headquarters. Every truck has approximately $150,000 annual expense for lease, maintenance, and insurance. The variable cost of operation for each truck is $4.50 per mile covering fuel and truck driver’s pay. The maximum mileage capacity of each truck is 250,000 miles per year and current demand is 1,000,000 miles per year. The company charges $9.00 per mile for a fully loaded truck shipment. Construct an Excel cross tabulation table to find profit for this company using 6 to 14 trucks and mileage demand of 1,000,000, 1,500,000, 2,000,000, 2,500,000, 3,000,000, and 3,500,000 miles. Based on the table indicate the optimal number of trucks needed for above listed mileages.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
