Sable Truckline QUESTION: Based on average profitability, which of two customers below should Sable Truckline serve? The relevant facts are as follows: Customer 1 is picked up on Mondays. The pickup is part of a route that averages 15 stops, covers 50 miles during the route, and generally requires 10 hours of driver labor. The average shipment from Customer 1 is 3000 pounds and 600 cubic feet. Linehaul trailer capacity is 42000 pounds and 3000 cubic feet, and the destination 550 miles away. Delivery for Customer 1 involves a route that covers 18 stops, 50 miles, and takes 10 hours of driving. ABC charges Customer 1 $5.25 per hundred pounds. Customer 2 is picked up on Wednesdays. The pickup is part of a route that averages 13 stops, covers 50 miles, and requires 9.5 hours of driver time. The average shipment from Customer 2 is 9000 pounds and 1800 cubic feet. Linehaul trailer capacity is 42000 pounds and 3000 cubic feet, and the destination is 750 miles away. Delivery for Customer 2 involves a route that covers 9 stops, 85 miles, and takes 9.5 hours of driver labor. ABC charges Customer 2 $4.85 per hundred pounds Unit costs and productivity are as follows: Pickup and/or delivery fuel economy Linehaul fuel economy Cost per gallon for fuel Labor cost-pickup and delivery Linehaul labor cost Pickup and/or delivery equipment cost Linehaul equipment cost (Equipment includes both tractor and trailer) 8.6 miles per gallon 6.3 miles per gallon $2.50 per gallon $19.00 per hour $.36/mile $48.00 per day $150.00 per day