Truck cannot compete with freight moving more than $500$ miles.

Truck is faster than rail by an average of $2$ transit days

Both Railroads have similar transit times

Customer is served by both railroads and truck

BMW is looking to ship $1000$ bilevels railcars, which carry finished vehicles, from Chicago, IL to Fostoria, OH$.$ The cost per car is $$1,321.$ Transit Time $4\mathrm{.}0$ days. The car will travel $350$ rail miles. A competing rail company is offering the customer a rate of $$2,175$ to move the railcars. A competing trucking company is offering a rate of $$550$ to move the freight. Average revenue per car on this commodity is $$4,610$ with an average length of haul of $750$ rail miles.