The CBL railroad has just published a new in-excess rate on items that the XYZ company ships quite open. CBL's present r

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The Cbl Railroad Has Just Published A New In Excess Rate On Items That The Xyz Company Ships Quite Open Cbl S Present R 1 (114.77 KiB) Viewed 72 times

The CBL railroad has just published a new in-excess rate on items that the XYZ company ships quite open. CBL's present rate is 10/cwt with a 70,000 pound minimum (1 cwt = 100 pounds). The in-excess rate just published is 8/cwt on shipment weight in excess of 70,000 pounds up to 140,000. The XYZ logistics manager presently ships in 70,000 pounds minimum. If D= 5,500,000 pounds, V = 300 (value per cwt) and h = 20% of the value per cwt, then i. find the optimum shipment quantity Q in cwt, given that Q = /(DQm$r)/(hV), the symbols have their usual meanings. ii. highlight whether any profit earned by availing the new in-excess rate given that the net profit is calculated as N, -S, -C,EDS - ) iii. Decide whether the company should go for the new in-excess rate providing support behind your decision. 1 08:1-8)-ar(Q-