#8: Propose a flat rate for each of the five zones using a cost/CWT. Preparing your question to be sent to tutors. Zone A Zone B Zone C Zone D Zone E $ $ Q#9: What would be the additional "cost" to us of using a better performing freight forwarder with a 7.5% EBITDA? "Should Be" rates using "Better Performer" Zone A Zone B Zone C Zone D Zone E S $ $ $Over $5M - Under Size by Revenue All $ 50M $50M $5M Cash 12.7% 11.6% 13.4% 13.0% Transportation Purchased 65.1% 64.3% 65.4% 66.1% Accounts Receivable 37.4% 39.1% 38.4% 35.4% Inventory 0.9% 0.9% 0.8% 0.9% Total Current Assets 58.4% 57.9% 60.1% 57.5% Property, Plant & Equipment 19.6% 17.9% 19.7% 20.9% Other Non-Current Assets 22.0% 24.2% 20.1% 21.6% Total Assets 100.0% 100.0% 100.0% 100.0% Accounts Payable 17.1% 16.9% 17.6% 16.9% Total Current Liabilities 35.5% 37.8% 35.2% 34.0% Total Long Term Liabilities 21.4% 17.2% 22.2% 24.2% Net Worth 43.1% 45.0% 42.7% 41.9% Total Assets to Sales 42.4% 44.8% 37.9% 44.0% EBITDA to Sales 6.6% 6.9% 6.3% 6.5% Hoover's Online Summary of the Freight Forwarder Industry Figure 4 "Use these rates to develop a negotiation strategy so we can negotiate a flat rate per CWT for each zone for what we expect to pay." Zone Zone Zone Zone Zone A B C D Total Weight Shipped Last Year (000s lbs): 56,250 100,850 57,800 42,200 28,100 0 to 499.9 5 2.40 $ 2.15 $ 2.35 $ 2.50 $ 2.75 500 to 999.9 $ 2.36 $ 2.10 $ 2.30 $ 2.46 $ 2.70 1,000 to 1,999.9 $ 2.32 $ 2.05 $ 2.25 $ 2.41 $ 2.65 Weight 2,000 to 4,999.9 $ 2.27 $ 2.00 $ 2.21 $ 2.37 $ 2.60 (Ibs) 5,000 to 9,999.9 $ 2.23 $ 1.97 $ 2.17 $ 2.33 $ 2.55 10,000 to 19,999.9 $ 2.20 $ 1.95 $ 2.10 $ 2.30 $ 2.45 20,000 to 29,999.9 $ 1.85 $ 1.65 $ 1.80 $ 1.95 $ 2.10 30,000 $ 1.48 $ 1.30 $ 1.45 $ 1.55 $ 1.70