TABLE EXAMPLE MATRIX OF WEIGHT BREAKS AND FREIGHT CLASS ($/CWT) Class < 500 (lbs) 500 (Ibs) 1,000 (Ibs) 2,000 (Ibs) 5,000 (Ibs) 10,000 (lbs) > 20,000 (lbs) 50 34.30 28.32 24.25 23.04 17.58 15.74 10.47 55 36.94 30.50 26.12 24.82 18.93 17.41 11.58 60 39.59 32.69 27.99 26.60 20.29 19.08 12.69 65 41.94 34.64 29.66 28.18 21.49 20.27 13.48 70 44.64 36.86 31.56 29.99 22.88 21.94 14.59 77.5 48.10 39.72 34.01 32.32 24.65 23.85 15.86 85 51.90 42.86 36.70 34.87 26.60 26.24 17.45 92.5 55.89 46.15 39.52 37.56 28.64 28.38 18.87 100 60.27 49.77 42.61 40.50 30.89 30.77 20.46
TABLE EXAMPLE MATRIX OF WEIGHT BREAKS AND FREIGHT CLASS ($/CWT) Class < 500 (lbs) 500 (Ibs) 1,000 (Ibs) 2,000 (Ibs) 5,000 (Ibs) 10,000 (lbs) > 20,000 (lbs) 50 34.30 28.32 24.25 23.04 17.58 15.74 10.47 55 36.94 30.50 26.12 24.82 18.93 17.41 11.58 60 39.59 32.69 27.99 26.60 20.29 19.08 12.69 65 41.94 34.64 29.66 28.18 21.49 20.27 13.48 70 44.64 36.86 31.56 29.99 22.88 21.94 14.59 77.5 48.10 39.72 34.01 32.32 24.65 23.85 15.86 85 51.90 42.86 36.70 34.87 26.60 26.24 17.45 92.5 55.89 46.15 39.52 37.56 28.64 28.38 18.87 100 60.27 49.77 42.61 40.50 30.89 30.77 20.46
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Microtech Incorporated has decided to package its cell phone in a smaller, recyclable package. Additionally, the company will discontinue the practice of shipping each phone with a 250-page user manual and instead will make the manual available online. These changes will result in a lighter, but more difficult package for shippers to handle. The weight of each packaged phone has dropped from 1.2 pounds to 0.5 pounds as a result of these changes and the freight classification has worsened from 55 to 70. Use Table to calculate the difference in Microtech’s monthly shipping charges if the company ships 10,000 phones per month.
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