Determine hernandez optimal shipping quantities

Assignment Help Accounting Basics
Reference no: EM131918721

Question: Marc Hernandez's construction firm currently has three projects in progress. Each requires a specific supply of gravel. There are three gravel pits available to provide for Hernandez's needs, but shipping costs differ from location to location. The following table summarizes the transportation costs:


To


From

Job 1

Job 2

Job 3

Tonnage Allowance

Central pit

$9

$ 8

$7

3,000

Rock pit

$7

$11

$6

4,000

Acme pit

54

$3

512

6,000

Job requirements (tons)

2,500

3,750

4,850

 

a. Determine Hernandez's optimal shipping quantities so as to minimize total transportation costs.

b. It is the case that Rock Pit and Central Pit can send gravel by rail to Acme for S1 per ton. Once the gravel is relocated, it can be trucked to the jobs. Reformulate this problem to determine how shipping by rail could reduce the transportation costs for the gravel.

Reference no: EM131918721

Questions Cloud

Discuss about the death penalty : The death penalty provides an effective method to obtain justice.The death penalty does not serve as an effective method for obtaining justice.
Waste disposal expected to be in one year : What is the stock price of Gomi Waste Disposal expected to be in 1 year?
Mass travel along the surface before stopping : a. How far does the mass travel along the surface before stopping? b. How would you have to change your solution if the surface were inclined below
Amount of the annual interest payment on the bonds : Current yield on the bond is 15%. What is the amount of the annual interest payment on the bonds?
Determine hernandez optimal shipping quantities : Marc Hernandez's construction firm currently has three projects in progress. Each requires a specific supply of gravel. There are three gravel pits available.
What is the rate of kinetic energy flowing : (a) What is the rate of kinetic energy flowing past the coast in KW?
Identify the independent or dependent variables : Write five problem statements and identify the independent or dependent variables.
Thinking of purchasing okura palletizing robotic system : You are thinking of purchasing an Okura palletizing robotic system that can turn a 4 person task into a 1 person task.
What is the final speed of the block : If the block begins with a speed of 3.0 m/s and is pulled for a distance of 18 m, what is the final speed of the block?

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.

  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!

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