Question

Smith Equipment has three separate shipments to customers all in the same city. The shipment weights are 20,000 lbs. 25,000 lbs., and 10,000 lbs. Smith Equipments carrier charges $14 per hundredweight (cwt) if each shipment is sent separately. If the three shipments are consolidated at Smith Equipments warehouse and sent in a single truck, the carrier charges $11 per cwt with a $500 consolidated delivery fee per destination added. Smith Equipment should
A. send the shipments separately at a savings of $1,500.
B. consolidate the shipments at a savings of $1,635.
C. consolidate the shipments at a savings of $150.
D. either choicethe shipment costs are equal.

Answer

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