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Suppose Jones Company has orders from three customers located in the same market area. One order has a total weight of 3,500 pounds, the second
Suppose Jones Company has orders from three customers located in the same market area. One order has a total weight of 3,500 pounds, the second weighs 8,200 pounds, and the third weighs 12,000 pounds. The transportation carrier quotes a freight rate of $21 per hundredweight (or cwt.) for direct shipment to the customer for shipments weighing 1000 to 4,999 pounds, $19 per cwt. for orders weighing 5,000 to 9,999 pounds, and $17 for shipments weighing between 10.000 and 15,000 pounds. Alternatively, the carrier's rate for shipments weighing more than 20,000 pounds is $14.00 per cwt. However, if the orders are combined into one consolidated shipment, the carrier will charge $250 for each stop it is required to make a. Calculate the total cost with or without consolidated shipment charge Total cost using separate shipments Total cost using consolidated shipment b. Should Jones consolidate the three shipments? Yes O NO
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