LTL Costing Exercise Your task is to calculate the cost of this shipment and determine what is the minimum rate that the carrier should charge for this shipment per hundred weight (cwt)_ The shipment consists of 25 canons, each weighing 30 pounds and measuring 1 cubic feet. The carrier's trailers have a weight capacity of 40,000 pounds and 2,880 cubic feet. This shipment then occupies 1.875 percent of the trailer's weight capacity and 13 percent of its cubic capacity _ Because the cubic feet requirement is greater, it will be used to allocate costs in the line-haul Route and Time of Movement The shipment is picked up by the carrier's driver in a pickup and delivery (PLD) city tractorjtrailer unit on June 1 , 2005, as one of 18 stops made by the driver that day from 0730 EST to 1730 EST. The covered a total of 40 miles within the Altoona, Pennsylvania satellite terminal service area. The shipment was one of three handled by the carrier at this particular shipper's location. Once the pickup vehicle returns to the Altoona terminal, it takes 30 minutes to move the shipment from the city unit across the dock to the line-haul trailer. The line-haul tractor/trailer departs from the Altoona terminal at 2300 EST on June 1 and arrives at the Cleveland break-bulk terminal, which is approximately 220 miles from the Altoona satellite, at 0400 EST on June 2. The shipment moves from the line-haul trailer across the dock to a PLO city tractorftrailer unit in 30 minutes. The shipment is delivered to the Cleveland consignee by the PID driver in a PLO city tractorjtrailer unit on June 2 as one of 12 stops made by the driver over the period 0830 EST to 1800 EST. The stops covered a total of miles in the CleR1and area This shipment is one of five delivered to this particular consignee by the driver. Equipment Cost Data Equipment Purchase Price Depreciation five-year straight line 1 _ Tractors 2 _ Trailers = eight-year straight line Interest = 10 percent APR for five 1 _ Tractors years 2. Trailers 10 percent APR for eight years Fuel 1 _ $2.00 per gallon for diesel 2. PUD tractors = five miles per gallon 3 _ LH tractors = 4.5 miles per gallon Labor Cost 1 _ PUD drivers = S25 per hour 2 _ Dock handlers = $22 per hour 3 _ LH drivers = $25 per hour Miscellaneous 7 Terminal variable cost per shipment at both origin and destination Terminal fixed cost per shipment at both origin and destination = S2_SO PUD equipment maintenance cost S_35 per mile LH equipment maintenance cost S_35 per mile PUD equipment insurance cost 523 per mile LH equipment insurance cost = S_23 per mile Billing cost = $1.95 per bill Equipment is available 365 days, 24 hours per day Administratiioverhead cost = 10 percent of total cost of move