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Sampson Industries is very concerned about the cost of shipping products on a daily basis to its distributor. Sampson is considering consolidating daily shipments into
Sampson Industries is very concerned about the cost of shipping products on a daily basis to its distributor. Sampson is considering consolidating daily shipments into weekly or even monthly deliveries. Currently, every month Sampson makes 20 shipments of 1,800 pounds each. Use the table below to calculate the monthly cost of Sampson's current shipping practice and then calculate the cost of consolidating to 10,5, 2 and then 1 shipment per month. Sampson believes that the freight classification will stay at 65 irrespective of consolidation. Click the icon to view the matrix of weight breaks and freight class. Fill-in the table below. (Enter your responses rounded to two decimal places.) Number of shipments Monthly cost 20 10 $ 5 2 $ $ $ 1 5 Class 50 55 60 65 70 77.5 85 92.5 100 Matrix of Weight Breaks and Freight Class ($/cwt)
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