Calculation: Determine how to price a truckload shipment that is 1,000 miles using the Market...
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Calculation: Determine how to price a truckload shipment that is 1,000 miles using the Market Value of Service method for the above company for a last-minute request going from New York to Texas.
| Expense Type | Annual (unless noted as per mile) Expense Cost | |||
| Tractor trailer | $600,000 (4-year depreciation) | |||
| Maintenance (Variable) | $.12/mile | |||
| Administrative | $80,000 | |||
| Fuel (Variable) | $3.60/gallon | |||
| Driver Wages (Variable) | $.54/mile | |||
| Insurance | $10,000 | |||
| Broker Board Quotes | $1,800 | $2,500 | $3,500 | $3,000 |
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