User Account

All Pages

What is the total cost of delivering to all customers

Assignment Help Accounting Basics
Reference no: EM132795234

OPERATIONS MANAGEMENT QUESTION - XYZ Company is rethinking the way it ships to its 58 customers in another city 216 miles away.

Current Shipping/Delivery Method

They currently hire an LTL (less-than-truckload) carrier to pick up and deliver these shipments. Each customer order shipped via LTL carrier costs $193.

Alternate Shipping/Delivery Method

A 3PL (third-party logistics provider) has approached XYZ Company and suggested that they make full truckload (TL) shipments from their facility to the 3PL's warehouse in the customers' city. The 3PL would then break the bulk shipment (TL or truckload shipment) into individual customer orders to be shipped locally by an LTL carrier. The relative data for this alternate shipping method are as follows:

Full TL shipment cost (216 miles) = $885

Average weight per customer order = 530 lbs.

Warehouse break-bulk fee (per 100 lbs., a.k.a. per "hundred weight") = $16

Local LTL delivery fee (per customer order) = $42

Required -

What is the total cost of delivering to all customers via LTL carrier (current method)? (whole number.)

How much money would XYZ company save by using the alternate shipping/delivery method for delivery to all customers? (whole number.)

At what number of customers would the cost of these two methods be the same? (whole number.)

Reference no: EM132795234

Questions Cloud

Create a proposal that describes the site to the client : Imagine you have been hired to create an e-Commerce website for Jestors Inc., an online retailer for magic supplies. Your goal is to create the layout.
What is the net effect in the shareholder equity as a result : What is the net effect in the shareholder's equity as a result of the exercise of the option? SC Company enters into a contract with San Miguel Corp.
Why do third parties require an api key : A third-party web API is a public web API used by a web application to access data provided by a third party. "Third-party" refers to a person or organization.
Why are recessions shorter than expansions : If the economy goes into recession, how will it affect you? Consider not just your income but the prices of any assets you might own or commodities you purchase
What is the total cost of delivering to all customers : XYZ Company is rethinking the way it ships to its 58 customers in another city 216 miles away. What is the total cost of delivering to all customers
What was us national income in 2018 : According to the Bureau of Economic Analysis, in 2018 US GDP was equal to $20,611.9 billion. Income receipts from the rest of the world
What amount should be reported in the december profit : What amount should be reported in the December 31, 2019 profit or loss related to the above contract? SC Company enters into a contract with San Miguel Corp.
Long-run link between money and output : Most economists and nearly all central bankers seem to think that inflation is costly
Describe the three common security risks : Threat ModelingA new medium-sized health care facility just opened and you are hired as the CIO. The CEO is somewhat technical and has tasked you with creating.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd