Bill Berry, transportation sales manager of Speedy Trucking Company, has considered serving a new customer, El Conquistador Inc., an importer of Venezuelan goods, by hauling 12 truckloads of product each month from the receiving port in Bayonne, New Jersey, to a distributor in Pittsburgh, Pennsylvania, for $850 per truckload. Each serving truck must depart from the Speedy terminal in Secaucus, New Jersey, 12 miles from the seaport. The distance from Bayonne to Pittsburgh is 376 miles. Upon unloading at Pittsburgh, trucks return empty (deadhead) to the Secaucus terminal 380 miles from the distributor. a. If it costs Speedy an average of $1.30 per mile to operate a truck, should Mr. Berry accept the business at the negotiated rate? Why or why not? b. Mr. Berry has coordinated back-haul moves for the Conquistador shipments above with a new customer in Youngstown, Ohio. The new customer, Super Tread Inc., ships tires from its plant in Youngstown to the port in Bayonne for exporting. Each Conquistador shipment will be accompanied with a return shipment from Super Tread (12 truckloads/month). Speedy will charge Super Tread $1.40 per mile. Bayonne is 430 miles from Youngstown. The distance from Pittsburgh to Youngstown is 65 miles. Trucks must return to the terminal in Seacaucus upon delivering product from the back-haul (before picking up again at Bayonne). The terms of the Conquistador agreement outlined in part (a) remain intact. How much can Mr. Berry expect Speedy to profit or loose per trip from the new arrangement? c. How much can Mr. Berry expect Speedy to profit or loose per month from the new arrangement should the company accept the business? d. Is it worthwhile for Mr. Berry to arrange for the back-haul? Why or why not