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1. Sazerac Company Sazerac Company finds that their bourbon and rye whiskeys are subject to evaporation in the tanker trucks used to distribute this product

1. Sazerac Company

Sazerac Company finds that their bourbon and rye whiskeys are subject to evaporation in the tanker trucks used to distribute this product from the distilleries to their local rack houses for their new tasting rooms and restaurants (called Rack House Restaurant) modeled after what Cooper's Hawk has done with wine. The average amount of evaporation depends on the distance traveled, the average temperature and the average humidity levels in the air. The following table shows the corresponding yield loss that has been observed to occur on each of its shipping routes.

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Rack House Restaurant Distilleries Atlanta Boston Chicago Denver Bardstown 0.24 0.19 0.07 0.11 Lawrenceburg 0.10 0.05 0.04 0.15 Pikesville 0.26 0.41 0.32 0.27 The following table show the cost to ship a gallon from a distillery to a restaurant. Rack House Restaurant Distilleries Atlanta Boston Chicago Denver Bardstown $0.60 $0.56 $0.22 $0.40 Lawrenceburg $0.36 $0.30 $0.28 $0.58 Pikesville $0.65 $0.68 $0.55 $0.42

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