Origin 303: Destination 489: MC 81.00 RBNO 00775E

Rate Class L5C M5C M1M M2M M5M M10M M20M M30M M40M

500 233.58 193.89 147.14 119.10 84.05 65.37 40.32 32.25 28.24

400 188.24 156.25 118.58 95.98 67.73 52.69 32.55 26.03 22.79

300 144.11 119.63 90.78 73.48 51.86 40.34 24.94 19.95 17.45

250 126.30 104.84 79.56 64.40 45.45 35.34 21.86 17.48 15.31

200 98.37 81.66 61.97 50.16 35.40 27.53 17.00 13.60 11.91

175 88.65 73.58 55.84 45.20 31.90 24.81 15.30 12.24 10.72

150 76.11 63.18 47.94 38.81 27.38 21.30 13.20 10.56 9.24

125 64.76 53.76 40.80 33.03 23.31 18.12 11.25 9.00 7.88

110 56.27 46.71 35.43 28.69 20.25 15.75 9.88 7.90 6.92

100 56.62 43.68 33.15 26.83 18.94 14.73 9.22 7.38 6.46

92 49.79 41.33 31.37 25.39 17.92 13.94 8.91 7.12 6.24

85 46.15 38.31 29.07 23.53 16.61 12.92 8.58 6.86 6.01

77 42.91 35.62 27.03 21.88 15.44 12.01 8.34 6.67 5.84

70 40.48 33.59 25.50 20.64 14.57 11.33 8.10 6.48 5.67

65 38.46 31.92 24.22 19.61 13.84 10.76 8.02 6.41 5.61

60 36.84 30.58 23.21 18.78 13.26 10.31 7.94 6.35 5.56

55 34.81 28.90 21.93 17.75 12.53 9.74 7.85 6.28 5.50

50 32.79 27.22 20.66 16.71 11.80 9.18 7.77 6.22 5.44

WIEGHT Under 500- 1000- 2000- 5000 10,000- 20,000- 30,000- over

LIMITS (lb) 500 1000 2000 5000 10,000 20,000 30,000 40,000 40,000

Stanley Harris, traffic manager of This n That Manufacturers, is considering the negotiations of a freight-all-kind (FAK) rate for shipment between Atlanta and Lansing. The company ships 200 (class 65) shipments of 5,000 lb., 40 (class 400) shipments of 1,200 lb., and 30 (class 100) shipments of 10,000 lb., and receives a 45% discount on published rates.

a) Refer to Table 8.8 to determine the current freight bill for the above shipments.

Note: Take the discount from the published rate and round up for the applicable hundredweight rate.

b)Should Mr. Harris accept a FAK rate of $10 per hundredweight?

c) What factors aside from price should Mr. Harris consider with a FAK rate?