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Application of Transportation Model
In the direct logic, the transportation model looks for the determination of a transportation plan of a particular commodity from a number of sources to a number of destinations. The data of the model comprise:
(1) The level of supply at each source and quantity of demand at each destination.
(2) The unit transportation cost of the commodity from each and every source to each and every destination.
As there is only one commodity, a destination can accept its demand from one or more sources. The purpose of the model is to establish the amount to be shipped from each source to each destination, and hence the total transportation cost is reduced.
Selling product for 31.00 and Variable expenses are 26.00. In order to cover the fixed expenses 31,500 hats must be sold what is the Total fixed cost in dollars?
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