Suppose Jones Company has orders from three customers located inthe same market area. One order has a total weight of 3,600 pounds,the second weighs 8,300 pounds, and the third weighs 12,100 pounds.The transportation carrier quotes a freight rate of $20 perhundredweight (or cwt.) for direct shipment to the customer forshipments weighing 1,000 to 4,999 pounds, $18 per cwt. for ordersweighing 5,000 to 9,999 pounds, and $16 for shipments weighingbetween 10,000 and 15,000 pounds. Alternatively, the carrier’s ratefor shipments weighing more than 20,000 pounds is $13.00 per cwt.However, if the orders are combined into one consolidated shipment,the carrier will charge $260 for each stop it is required to make.Calculate the total cost with or without consolidated shipmentcharge.
a) total cost using separate shipments
b) total cost using consolidated shipment
