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Question 16 15 pts Total Landed Cost Assume 2 companies sell coffeemakers: FW is in Ft. Worth, its product costs $24.40 FOB. Transportation cost is
Question 16 15 pts Total Landed Cost Assume 2 companies sell coffeemakers: FW is in Ft. Worth, its product costs $24.40 FOB. Transportation cost is 40 cents per mile. D is in Dallas (33 miles away), its product costs $21.20 FOB. Transportation cost is 35 cents per mile. TLC = P + (RxD) Production Cost + Transportation Cost Production Cost = (P) Transportation Cost = [Rate(R) x Distance (D)] Scenario 2: 10 Mile TLC Sell 10 miles from FW's plant So...If FW wants to sell their product 10 miles from their plant, they must charge at least to cover expenses. D must charge to cover their expenses to get it to the same location. gets the sale
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