FirstRate Transportation (FRT) has retained the service of Newco to evaluate the profitability and costing strategy of a request for quote before FRT submits their price on the lanes. FRT has been invited to bid on several new long-haul lanes originating from 50 Kenview Blvd, Brampton, Ontario Canada and ending at 355 Morgan Lakes Industrial Blvd, Savannah, Georgia, USA. Eighty percent of FRT business involves short- haul moves and venturing into the Long-haul sector is new to them. The Newco team has been retained to establish a price per mile that FRT should propose and submit in the RFQ. Route details Brampton yard-truck and trailer and dispatch area Cross-dock loading facility 20 KM from the yard Cross-dock facility is operated by FRT- Shunt drivers pull empty trailers from yard and drops trailer in the door at the cross-dock facility Long haul drivers pull the loaded trailer to the delivery facility in savannah Georgia, Once freight is unloaded in Georgia the route is technically over. FRT will either need to deadhead back to the Brampton yard or arrange some type of backhaul load. Refer to the cost data set to calculate the fixed and variable cost per mile. Ensure all regulations regarding driver on duty requirements are met. Assume straight line deprecation with a zero-salvage value for both the tractors and trailers The shipment is 45000 pounds. The cross dock requires two operators to prepare the load for 8 hours. Preparation time which includes unloading inbound freight, sorting and loading the outbound trailer. Assignment questions/Details 1. Calculate the pick up, sort, line-haul and delivery costs. Use the data sheet provided. 2. The route planning is open and to be designed by the Newco team. 3. Use the course material to obtain and calculate bench mark calculations. Hardee Transportation 1. Line-haul tractors 2. Line-haul Trailers 1. Tractors-straight line Years 2. Trailers- straight line Years Tractors Equipment Cost Datal Trailers 1. per gallon for diesel 2. Line-haul tractors - XX miles per gallon Fuel per mile Equipment Purchase Price cellaneous Insurace cost per mile Maintenance cost per mile Depreciation Interest Percent APR Years to payback Line- haul drivers XX per mile Pick up and deliver Shunt drivers -XX (fully loaded) per hour Dock Workers = XX(fully Loaded) per hour Percent APR Years to payback Fuel Labour Billing Cost per freight bill tractors and trailers are available for use 24 hours per day, 365 days per year Admin overhead cost percentage of total move Dock Facility Cost per hour Line-hual vehicle averages between origin and destination (MPH) Variables $160,000.00 $40,000.00 7 10 6% 5 6% 8 5.99 10 0.60 $ 0.45 $ 30.00 $ 35.00 $ 0.075 $ 0.200 $ 2.10 10% $ 18.00 45 Days in a year hours in a day hours in a year 365 24 8760