Calculate the total transportation cost, Cost Accounting

Assignment Help:

The sunshine tomato soup shippers produce tomato soup at three west coast canneries in Bakersfield, phoenix, and Eugene. The soup is shipped to four regional warehouses. Due to high demand, the company is considering opening a fourth cannery. The company is considering opening up the fourth cannery either at san diego, san jose, los angeles, or Stockton. The following table shows the cost of shipping a case from each cannery [existing and proposed] to each regional warehouse. The company wishes to ship all of its cannery capacity to the regional warehouses so that monthly transportation cost is minimized.

 

Source                         seattle,             los angeles,      Denver,           Dallas,             Maxium

                                    Washington     California        Colorado         Texas               monthly

                                                                                                                                    Cannery capacity

Phoenix, Arizon             $2.80                  $0.60             $1.20               $1.50              70,000

Eugene, Oregon            $0.50                   $1.20             $2.20                $2.90              80,000

Bakersfield, California    $1.80                   $04.0              $1.80               $2.20              90,000

Los angeles, California   $1.70                  $0.75              $1.75               $2.50              110,000

San diego, California      $1.80                   $0.60             $1.60               $2.60              110,000

San jose, California       $1.40                   $0.70             $2.00               $2.40              110,000

Stockton, California       $1.60                    $0.80            $1.80               $2.50               110,000

Monthly warehouse   

       Demand                 80,000                  90,000            70,000             100,000

 

  •  What is the total transportation cost if each of the four sites should be selected?
  •  White site should be selected to locate the next cannery? Why?
  •  State the shipment schedule associated with the selected site.
  •  For the optimum solution determined, perform Sensitivity Analysis and interpret the results.

Related Discussions:- Calculate the total transportation cost

Labour variances, L ABOUR VARIANCES Labour Cost Variance (LCV) De...

L ABOUR VARIANCES Labour Cost Variance (LCV) Described by the ICMA, London, 'Labour cost variance is the variation between the standard direct wages specified for the pro

Direct cost as a relevant cost, Direct Cost as a Relevant Cost Direct ...

Direct Cost as a Relevant Cost Direct costs may be directly chargeable to a cost center or a product. They may be fixed costs or variable costs whereas it comes to decision-ma

Business Combinations, what are the legal distinctions between a business c...

what are the legal distinctions between a business combination, a merger, and a consolidation.

Job order costing, the folloeing job order cost sheets were purchased for t...

the folloeing job order cost sheets were purchased for three jobs that were in production during january job 97 job 98 job 99 material

Mr., behabioural aspect of standard costing on budget

behabioural aspect of standard costing on budget

Measuring performance in organization, list and discus the problem encounte...

list and discus the problem encountered in adopting profit as a yardstick in measuring performance

Economic order quality or eoq, Economic Order Quality or EOQ Define th...

Economic Order Quality or EOQ Define the model and the three methods of computing the EOQ. 1. Assumptions of the model. Illustration The given information was extra

Evaluate the cost structure, The project (using the tools and techniques gi...

The project (using the tools and techniques given in Chapters 3, 8, 10, 11, and 12 of the textbook) and its subsequent report are based on the complete economic analysis of a compa

Regression analysis, what is regression analysis and its applicability to t...

what is regression analysis and its applicability to the course of cost accounting

Estimate total money using marginal and average tax rate, Thomas Crown expe...

Thomas Crown expects to earn the following stream of annual income for the next four years:- $41,000; $45,000; $38,000 and $50,000. Although he has adopted the Pay Yourself First s

Write Your Message!

Captcha
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