As a second alternative, Simmons can purchase its own trucks thereby reducing its shipping costs to 85% of the original rate. The new trucks would have an expected life of 10 years, no salvage value and would be depreciated on a straight line basis. Related fixed costs excluding depreciation would be $2,000. Assume that if Simmons purchases the trucks, Simmons will replace the principal shipper and the other shippers, Following are data from the prior year: Sales Variable costs (excluding shipping) Shipping costs Fixed costs $1,500,000 1,095,000 135,000 150,000 4. Describe what you think is the competitive strategy of Simmons Farm and Seed Company. What should be the strategy? How would the use of a new carrier affect the strategy? Essay Toolbar navigation B I VS EE1 H