Total transportation cost when transit privilege

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Reference no: EM131151222

Suppose a shipment of 25,000 lbs is originated from point I. An additional 15,000 lbs is to be combined with it at point J and both shipments are to be transported to point K. The transportation rate from point I to point J is $0.2/cwt. The transportation rate from point J to point K is $0.15/cwt. The transportation rate from point I to point K is $0.3/cwt. The stop-off charge is $20.

a) How much is the total transportation cost when transit privilege is not used? Please provide at least one step of calculation and the correct cost for full credit.

b) How much is the total transportation cost when transit privilege is used? (1 cwt = 100 lbs) Please provide at least one step of calculation and the correct cost for full credit.

Please answer A and B and Show the work.

Reference no: EM131151222

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