Answer Happy

Arts N Crafts Industries manufacturers high-end light fixtures
which it sells internationally. The company is responsible for
paying for shipping its product to a distributor located in
Atlanta, Georgia. Due to the high cost of shipping, the company is
considering shipping its products unassembled, but will include
detailed assembly instructions in each package. By shipping
unassembled products, Arts N Crafts will be able to shrink the size
of its cartons and thereby increase the number of products per
pallet from 25 (5 rows of 5) to 36 (6 rows of 6) . Note that
this change will not appreciably increase each products 4-pound
shipping weight. Furthermore, since individual fixtures will be
packed more tightly, they will be less susceptible to damage and
easier to handle. Thus, the company expects the freight class to
decrease from 100 to 85. Currently the company ships 900 units per
week.
Using the table below, assess the impact of the proposed change
in packaging on weekly shipping cost.
a. Before shrinking the size of the cartons, shipping costs are
$__ per week (Enter your response rounded to two decimal
places.)
b. After shrinking the size of the cartons, shipping costs are
$__ per week. (Enter your response rounded to two decimal
places.)
c. The new packaging will (1) shipping costs by $__ per week.
(Enter your response rounded to two decimal places.)
d. How will your analysis change if demand for the product
increases to 500 units per week? Before shrinking the size of the
cartons, shipping costs are $__ per week. (Enter your response
rounded to two decimal places.)
e. After shrinking the size of the cartons, shipping costs are
$__ per week. (Enter your response rounded to two decimal
places.)
f. The new packaging will (2) shipping costs by $__ per week.
(Enter your response rounded to two decimal places.)
Class 50 55 60 65 70 77.5 85 92.5 100 <500 (lbs) 41.16 44.33 47.51 50.33 53.57 57.72 62.28 67.07 72.32 Matrix of Weight Breaks and Freight Class ($/cwt) 1,000 (lbs) 2,000 (lbs) 5,000 (lbs) 10,000 (lbs) 500 (lbs) 33.98 29.1 27.65 21.1 18.89 36.6 31.34 29.78 22.72 20.89 39.23 33.59 31.92 24.35 22.9 41.57 35.59 33.82 25.79 24.32 44.23 37.87 35.99 27.46 26.33 47.66 40.81 38.78 29.58 28.62 51.43 44.04 41.84 31.92 31.49 55.38 47.42 45.07 34.37 34.06 59.72 51.13 48.6 37.07 36.92 ≥20,000 (lbs) 12.56 13.9 15.23 16.18 17.51 19.03 20.94 22.64 24.55