Suppose a shipment of 50,000 lbs is originated from point I. An additional 20,00

Question

Suppose a shipment of 50,000 lbs is originated from point I. An additional 20,000 lbs will be combined with it at point J and both shipments will be delivered to point K. Suppose the line-haul rate from point I to point J is $0.3/cwt and the line-haul rate from point J to point K is $0.1/cwt. The line-haul rate from point I to point K is $0.35/cwt. Transit privilege with a stop-off charge of $20 is available. What is the total transportation cost when transit privilege is used? 1 cwt = 100 lbs $240 $245 $220 $265

Explanation / Answer

Transportation charge from Point I to J = line haul rate*Shipment weight = 0.3/100*50000 = 150$

Transportation charge from Point J to K = line haul rate*Shipment weight = 0.1/100*(50000+20000) = 70$

Stop off charge = 20$

Total transportation charges = 150+70+20 = 240$

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