You are the Pricing Manager for Transport Expeditors, a regional LTL motor carrier. Your first task this morning is to determine the cost of a shipment consisting of 25 cartons, each weighing 150 pounds and measuring nine (9) cubic feet. Also, you are to determine the price on a per ton-mile and per vehicle-mile basis. The shipment is being originated in Ames, IA and is destined for Downers Grove, IL. Transport Expeditors nearest terminals for pickup and delivery are Des Moines and Chicago, respectively. The shipment is one of two made by Hach Company this day, and is one of 12 stops on the pickup route. The total time for pickups along this route (which includes Ames, Boone, Huxley, and Nevada) is 10 hours, and the total distance for pickup is 90 miles. Once the shipment reaches the Des Moines terminal, it takes six (6) minutes to move the shipment from the PUD unit across the dock to the linehaul trailer. The distance between the Des Moines and Chicago terminals for the linehaul portion of the movement is 350 miles and takes seven (7) hours. It takes 10 minutes to move the shipment from the linehaul unit across the Chicago dock to the PUD unit. The delivery run includes 20 stops and takes eight (8) hours. The distance covered on this delivery route is 80 miles. The Hach shipment is one of four (4) delivered to the consignee in Downers Grove that day. Relevant cost data and equipment information are provided below: Equipment Purchase Price Depreciation Interest PUD tractor = $55,000 LH tractor = $135,000 PUD trailer = $25,000 LH trailer=$35,000 4-year, strt, In. 5% APR, 4 yrs. 4-year, strt In. 5% APR, 4 yrs. 6-year, strt, ln. 5% APR, 6 yrs. 6-year, strt, In. 5% APR, 6 yrs. PUD trailer capacity: LH trailer capacity: 40,000 pounds and 2,972 cubic feet 45,000 pounds and 3,500 cubic feet Fuel: $3.15 per gallon LH tractor: 5.5 miles per gallon PUD tractor: 7.0 miles per gallon Labor PUD drivers Dock workers LH drivers Des Moines $20 per hr. $18 per hr. $26 per hr. Chicago $24 per hr. $22 per hr. $26 per hr. Other Costs and Operating Data terminal variable cost per shipment at both DSM and Chicago = $1.30 terminal fixed cost per shipment at both DSM and Chicago = $1.60 equipment maintenance cost per mile for both PUD and LH = $0.20 = $0.05 insurance cost per mile for both PUD and LH equipment billing cost per freight bill = $2.50 administrative/overhead cost as percentage of total cost = 12% LH equipment is utilized 365 days, 22 hours per day You are the Pricing Manager for Transport Expeditors, a regional LTL motor carrier. Your first task this morning is to determine the cost of a shipment consisting of 25 cartons, each weighing 150 pounds and measuring nine (9) cubic feet. Also, you are to determine the price on a per ton-mile and per vehicle-mile basis. The shipment is being originated in Ames, IA and is destined for Downers Grove, IL. Transport Expeditors nearest terminals for pickup and delivery are Des Moines and Chicago, respectively. The shipment is one of two made by Hach Company this day, and is one of 12 stops on the pickup route. The total time for pickups along this route (which includes Ames, Boone, Huxley, and Nevada) is 10 hours, and the total distance for pickup is 90 miles. Once the shipment reaches the Des Moines terminal, it takes six (6) minutes to move the shipment from the PUD unit across the dock to the linehaul trailer. The distance between the Des Moines and Chicago terminals for the linehaul portion of the movement is 350 miles and takes seven (7) hours. It takes 10 minutes to move the shipment from the linehaul unit across the Chicago dock to the PUD unit. The delivery run includes 20 stops and takes eight (8) hours. The distance covered on this delivery route is 80 miles. The Hach shipment is one of four (4) delivered to the consignee in Downers Grove that day. Relevant cost data and equipment information are provided below: Equipment Purchase Price Depreciation Interest PUD tractor = $55,000 LH tractor = $135,000 PUD trailer = $25,000 LH trailer=$35,000 4-year, strt, In. 5% APR, 4 yrs. 4-year, strt In. 5% APR, 4 yrs. 6-year, strt, ln. 5% APR, 6 yrs. 6-year, strt, In. 5% APR, 6 yrs. PUD trailer capacity: LH trailer capacity: 40,000 pounds and 2,972 cubic feet 45,000 pounds and 3,500 cubic feet Fuel: $3.15 per gallon LH tractor: 5.5 miles per gallon PUD tractor: 7.0 miles per gallon Labor PUD drivers Dock workers LH drivers Des Moines $20 per hr. $18 per hr. $26 per hr. Chicago $24 per hr. $22 per hr. $26 per hr. Other Costs and Operating Data terminal variable cost per shipment at both DSM and Chicago = $1.30 terminal fixed cost per shipment at both DSM and Chicago = $1.60 equipment maintenance cost per mile for both PUD and LH = $0.20 = $0.05 insurance cost per mile for both PUD and LH equipment billing cost per freight bill = $2.50 administrative/overhead cost as percentage of total cost = 12% LH equipment is utilized 365 days, 22 hours per day