Suppose you have three shipments to make. One shipment has a weight of 4,200 pounds, the second weighs 8,900 pounds, and the third weighs 12,700 pounds. When paying based on weight of shipment, we do not calculate in-transit holding cost, we only pay based on the weight of the shipment. The transportation rates are: $18/cwt(1cwt.=100 pounds) for shipments of 1,0005,000 pounds $16/ cwt. for 5,00010,000 pounds $14/ cwt. for shipments over 10,000 pounds. For consolidated shipments, there is a charge of $320 per stop. - For example, if two shipments each weigh 3,000 pounds and we ship them separately, we would pay the rate for shipments between 1,000 and 5,000 pounds. Each shipment would be charged 3000/100=30cwt$18. - If we consolidate the two shipments, the rate will be based on 3,0002=6,000 pounds of weight, which puts the cost into the 5,000 to 10,000 pound rate. Then the cost is 6000/100=60 cwt $16. - The trade-off: consolidated shipments pay a lower rate for the consolidated weight, but they also incur a stop-off charge for each stop, including the first stop. For the consolidated shipment, in addition to the 60cwt$16, we would also pay 2 stops $320. a. Calculate the cost for three individual shipments vs a consolidated shipment of the three orders. b. What will be the cost difference if you choose to consolidate the shipments rather than to ship each one individually? Suppose you have three shipments to make. One shipment has a weight of 4,200 pounds, the second weighs 8,900 pounds, and the third weighs 12,700 pounds. When paying based on weight of shipment, we do not calculate in-transit holding cost, we only pay based on the weight of the shipment. The transportation rates are: $18/cwt(1cwt.=100 pounds) for shipments of 1,0005,000 pounds $16/ cwt. for 5,00010,000 pounds $14/ cwt. for shipments over 10,000 pounds. For consolidated shipments, there is a charge of $320 per stop. - For example, if two shipments each weigh 3,000 pounds and we ship them separately, we would pay the rate for shipments between 1,000 and 5,000 pounds. Each shipment would be charged 3000/100=30cwt$18. - If we consolidate the two shipments, the rate will be based on 3,0002=6,000 pounds of weight, which puts the cost into the 5,000 to 10,000 pound rate. Then the cost is 6000/100=60 cwt $16. - The trade-off: consolidated shipments pay a lower rate for the consolidated weight, but they also incur a stop-off charge for each stop, including the first stop. For the consolidated shipment, in addition to the 60cwt$16, we would also pay 2 stops $320. a. Calculate the cost for three individual shipments vs a consolidated shipment of the three orders. b. What will be the cost difference if you choose to consolidate the shipments rather than to ship each one individually