Part A Thornton Trucking is hired to move a shipment from Birmingham to New Orleans. Thornton Trucking's variable cost is $90 and average cost is $100. The company uses value-of-service pricing for this shipping lane. The price is $110 for this headhaul (the shipment that initated the original movement of Thornton Trucking's equipment). The price covers both the average cost and the variable cost. Once the shipment is complete, the carrier's equipment is at point B and it must be returned to point A. What two options does the carrier have? Part B Thornton Trucking has opted to perform a backhaul. The company faces a totally different market for the backhaul lane of New Orleans to Birmingham. The fixed cost for the shipment is $90 for fuel and wages because the driver must return. $90 is allocated as a fixed over the units of output (2 lanes - headhaul and backhaul) resulting in an average cost of $50. The marginal cost of the backhaul lane is those costs that would be avoided if the driver returned empty. The marginal cost will be the added cost of loading the shipment and the reduced fuel efficiency which equals $20. The market demands a price of $80 for the backhaul lane. Should Thornton Trucking accept the backhaul? Part A Thornton Trucking is hired to move a shipment from Birmingham to New Orleans. Thornton Trucking's variable cost is $90 and average cost is $100. The company uses value-of-service pricing for this shipping lane. The price is $110 for this headhaul (the shipment that initated the original movement of Thornton Trucking's equipment). The price covers both the average cost and the variable cost. Once the shipment is complete, the carrier's equipment is at point B and it must be returned to point A. What two options does the carrier have? Part B Thornton Trucking has opted to perform a backhaul. The company faces a totally different market for the backhaul lane of New Orleans to Birmingham. The fixed cost for the shipment is $90 for fuel and wages because the driver must return. $90 is allocated as a fixed over the units of output (2 lanes - headhaul and backhaul) resulting in an average cost of $50. The marginal cost of the backhaul lane is those costs that would be avoided if the driver returned empty. The marginal cost will be the added cost of loading the shipment and the reduced fuel efficiency which equals $20. The market demands a price of $80 for the backhaul lane. Should Thornton Trucking accept the backhaul