16 B x fx A B C D E F G 1 Johannesburg turns out to be a challenging city to service, because 2 many of the auto dealers are 60 to 70 km outside the city, while the port 3 where the parts come in (Durban) is 569 kilometers (km) away. 4 5 Your boss has decided to add a charge for domestic transportation and delivery. This charge is supposed to equal the average cost per plug for bringing the plugs from Durban to Johannesburg on a large truck, transferring the goods from the large truck to a smaller delivery vehicle, and making the final delivery. Equipment is fully depreciated, so its cost can be ignored. 6 7 The relevant costs, fuel economy, and times are 8 9 Time at Durban for pickup 10 Time from Durban to Johannesburg 11 Load factor, Durban to Johannesburg 12 Fuel economy, Durban to Johannesburg 13 Transfer productivity 14 Number of Delivery Stops per route 15 Average size of delivery 16 Time spent delivering per route 17 Fuel economy, delivery vehicle 18 Average length of daily route 19 2 hours 7 hours H 50000 plugs per truck 5 km per liter 5000 plugs per hour 15 stops per day 50 plugs per stop 8 hours per route 6 km per liter 300 km Hourly wage Fuel price $10.75 per hour $2.05 per liter HOW MUCH SHOULD YOUR COMPANY ADD TO COVER THE DOMESTIC TRANSPORTATION COST? (50 POINTS) Looking for a price per plug. Show your work. 20 21 22 Question 1 Question 2 Question 3 Question 4 INSTRUCTIONS