Calculate the total transportation cost, Cost Accounting

The sunshine tomato soup shippers produce tomato soup at three west coast canneries in Bakersfield, phoenix, and Eugene. The soup is shipped to four regional warehouses. Due to high demand, the company is considering opening a fourth cannery. The company is considering opening up the fourth cannery either at san diego, san jose, los angeles, or Stockton. The following table shows the cost of shipping a case from each cannery [existing and proposed] to each regional warehouse. The company wishes to ship all of its cannery capacity to the regional warehouses so that monthly transportation cost is minimized.

 

Source                         seattle,             los angeles,      Denver,           Dallas,             Maxium

                                    Washington     California        Colorado         Texas               monthly

                                                                                                                                    Cannery capacity

Phoenix, Arizon             $2.80                  $0.60             $1.20               $1.50              70,000

Eugene, Oregon            $0.50                   $1.20             $2.20                $2.90              80,000

Bakersfield, California    $1.80                   $04.0              $1.80               $2.20              90,000

Los angeles, California   $1.70                  $0.75              $1.75               $2.50              110,000

San diego, California      $1.80                   $0.60             $1.60               $2.60              110,000

San jose, California       $1.40                   $0.70             $2.00               $2.40              110,000

Stockton, California       $1.60                    $0.80            $1.80               $2.50               110,000

Monthly warehouse   

       Demand                 80,000                  90,000            70,000             100,000

 

  •  What is the total transportation cost if each of the four sites should be selected?
  •  White site should be selected to locate the next cannery? Why?
  •  State the shipment schedule associated with the selected site.
  •  For the optimum solution determined, perform Sensitivity Analysis and interpret the results.
Posted Date: 2/25/2013 6:06:36 AM | Location : United States







Related Discussions:- Calculate the total transportation cost, Assignment Help, Ask Question on Calculate the total transportation cost, Get Answer, Expert's Help, Calculate the total transportation cost Discussions

Write discussion on Calculate the total transportation cost
Your posts are moderated
Related Questions
Variance Analysis and Standard Costing Standard costing is defined with CIMA like a technique that uses standards for revenues and costs for the purpose of control via varianc


Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h


Explain:- Q Why is the statement of cash flows useful? Q. How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from opera

Early in 2014, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2014 and

diff between cost estimation and cost accounting

i want to know the different types of costs.

Tyler's Consulting Company has purchased a new $15,000 copier. This overhead cost will be shared by the purchasing, accounting, and information technology departments since those a