Respuesta :
Answer:
Yes, firm should consolidate shipment as it give saving of $990.
Explanation:
Given: Three customer order 12000 lbs of coal each.
Cost of individual shipment is $15.75 per 100 lbs
Cost of consolidated shipment is $10.50 per 100 lbs with $300 fees.
Now, lets find out cost for all 3 customer in both the shipment.
Cost of individual shipment= [tex]\frac{12000}{100} \times 15.75 = 120\times 15.75[/tex]
= $1890
Next, cost for all three customer´shipment is [tex]1890\times 3= \$ 5670[/tex]
∴ Cost of shipment for three customer through individual shipment is $5670
Cost of consolidated shipment:
[tex]\frac{12000}{100} \times 10.50= 120\times 10.50 = \$ 1260[/tex]
Next, cost for all three customer with the $300 fee= [tex]3\times ( 1260+300)= \$ 4680[/tex]
∴ Cost of shipment for three customer through consolidated shipments is $4680
Saving with consolidated shipment = [tex]5670-4680= \$ 990[/tex]
Now, we can say it is profitable for firm to consolidate shipment as it give saving of $990.
