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Donegal Footwear is an international supplier of outdoor footwear for adventurous families. Currently, the company uses a logistical provider to provide warehouse services and
Donegal Footwear is an international supplier of outdoor footwear for adventurous families. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract calls for $5 million in annual fixed charges, which covers the provider's overhead and warehouse costs, and variable costs of $12.00 per package shipped. Recently, Donegal Footwear found a warehouse it could lease at a cost of $18 million per year, which includes lease costs, labor, and management oversight. Furthermore, the company found another provider who would deliver packages from the warehouse for $10.00 per package. Considering only costs, how many packages must Donegal Footware ship to make the vertical integration into warehouse operations beneficial? Donegal Footwear must ship packages to make the vertical integration into warehouse operations beneficial. (Enter your response as an integer)
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