A company processes feathers and ships them loose in a covered truck. The line-haul cost for an average shipment is $250, and the truck carries 2000 pounds of feathers.

A bright new graduate has just been hired and has suggested that they should bale the feathers into 500-pound bales. This would make them easier to handle and also allow them to be compressed into about one-tenth of the space they now occupy. How many pounds of feathers can the truck now carry? What is the present line-haul cost per pound? What will it be if the proposal is adopted?

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