You are willing to pay for the stop-off privilege

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You have a shipment of 20,000 lb from the Baltimore to the Chicago and another shipment of 30,000 lb from Pittsburgh to Chicago. The Brown Shipping Company charges $10/cwt from Baltimore to Pittsburgh and $15/cwt from Pittsburgh to Chicago. It also charges $20/cwt from Baltimore to Chicago.

Since the Brown Shipping Company offers transit (stop-off) privilege and you can use it, you want to explore whether you want to use the transit privilege or not.

Find how much money that you are willing to pay for the stop-off privilege.

(Please explain thoroughly steps)

Reference no: EM131305689

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