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

Calculate the equivalent annual cost, A plant is considering the replacemen...

A plant is considering the replacement of a piece of equipment in its materials handling system with a new piece. If the company's cost of capital is 10%. Should the present asset

Calculate the gross profit margin, Assets                                  ...

Assets                                               2011                                                                        2010 Non Current Assets

Determine the variable cost element for selling expense, The following info...

The following information pertains to Tudor Logistics Company: 200X Information: Sales                                      $4,875,000 Selling expense

Cost sheet, Marple Associates is a consulting firm that specializes in info...

Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Houston and one in Dallas

Financially acceptable, Suppose that you are the chief financial officer at...

Suppose that you are the chief financial officer at Porter Memorial Hospital.  The CEO has asked you to analyze two proposed capital investment-Project X and Project Y.  Every proj

Calculate the optimal re-order quantity, Mr. Marley is a wholesaler who buy...

Mr. Marley is a wholesaler who buys and sells a wide range of products, one of which is the Laker. Mr. Marley sells 24,000 units of the Laker each year at a unit price $20. Sales o

Variance, It is important to have performance measures to evaluate managers...

It is important to have performance measures to evaluate managers as they control resources and invest in assets for the company. Describe how you could use different variances (ac

Advantages of standard costing, Advantages of Standard Costing 1. Man...

Advantages of Standard Costing 1. Management via Exception: the standard costing is an example for management via exception. By studying the variances, management's attentio

Production needs in inventory for component a, Kenner company produces two ...

Kenner company produces two products: SR200 and TX500. Budged sales for four months are as follows; SR200 TX500 May 8,000 20,000 June 13,000 32,000 July 11,000 39,000 August 18,000

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