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Can u help us answer all four question of case study. With detail calculation Cesting and Pricing for Trasportation 145 CASE 4-2 Hardee Transportation (B)
Can u help us answer all four question of case study. With detail calculation
Cesting and Pricing for Trasportation 145 CASE 4-2 Hardee Transportation (B) f lim O'Brien's customers has presented him with an opportunity for a significant Of freight moving into a new market for Hardee. Hardee is a truckload carrier aariy moving freight in the East/West market in the United States. Although it has movements in and out of Canada and Mexico, Hardee has focused on moving in eastward and westward directions. Hardee has dispatch centers located One flcant some mo,,-fre friendhout the United States, which have some dock capacity. throughout The new move would be between Pittsburgh and Miami, Hardee has avoided this backhaul opportunities that exist outbound from Florida. this new move offers a significant increase in volume for Hardee. A complicat- in this move is the request that Hardee perform sorting and segregation at its risnatch centers. Each shipment will consist of straight (one product) pallet loads of var- market because of the lack of ous types of consumer goods Miami. Sorting and segregation at Hardee's locations would consist of breaking the pal- freight destined for a retailer's distribution center in ledts and sorting the freight by the retailer's store locations, then repalletizing into rain- bow (mixed products) pallets for each store. Hardee has never experienced this type of request before. Jim knows that he needs to put some type of costs to this move to make sure that the moves are profitable. Because of the large volume involved, not covering Hardee's costs in pricing could result in large losses for Hardee. The relevant information for costing this move is as follows: Equipment Cost Data Equipment Purchase Price 1. Line-haul tractors $120,000 2. Line-haul trailers $40,000 Depreciation 1. Tractors 5-year straight line 2. Trailers 8-year straight line Interest 1. Tractors - 6 percent APR for 5 years 2. Trailers 6 percent APR for 8 years Fuel 1. $3.83 per gallon for diesel 2. Line-haul tractors-6.0 miles per gallon Labor $0.45 per mile 2. Pickup and delivery (PUD) drivers 1. Line-haul drivers $30 (fully loaded) per hour 3. Dock workers $25 (fully loaded) per hourStep by Step Solution
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