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Question 2 (10 points) iWatch, Inc. ships watch bands with 7 different colors from Atlanta to Lansing. The company has hired IDEO to redesign
Question 2 (10 points) iWatch, Inc. ships watch bands with 7 different colors from Atlanta to Lansing. The company has hired IDEO to redesign the watch band with 7 different colors packaging in an "Apple" like elegant shipping box to reduce the weight and to minimize damage in transit and storage. As a result, UPS has dropped the product classification for shipping from class 150 to 70. A). What effect does the new packaging have on the transportation cost of a single 30,000 lbs. shipment from class 150 to 70? Refer to Table 8.8 for your product classification freight rate. B). iWatch Inc. will pay $60,000 to IDEO for packaging redesign work. What is the break-even number of loads in a 30,000 lbs, shipment? In other words, if you are shipping 30,000 lbs. each time, how many times do you need to ship in order to achieve a breakeven return for your $60,000 investment in packaging? Paragraph B T S Stop stating
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