ABC Truckline is trying to determine which of two customers to serve, based on average profitability....

 

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ABC Truckline is trying to determine which of two customers to serve, based on average profitability. The relevant facts are as follows: Customer 1 is picked up on Mondays. Customer 1 is on a pickup route that averages 23 stops, covers 60 miles during the route, and generally requires 11 hours of driver labor. The average shipment from Customer 1 is 600 pounds and 240 cubic feet. Linchaul trailer capacity is 40,000 pounds and 3000 cubic feet, and the destination 200 miles away. Delivery for Customer I is on a route that covers 16 stops, 45 miles, and takes 10.5 hours of driving ABC charges Customer 1 $5.25 per hundred pounds. Handling at origin and destination is 15 minutes at each end. Charge per Cubic feet S.64 Customer 2 is picked up on Wednesdays. Customer 2 is on a pickup route that averages 13 stops, covers 50 miles, and requires 9.5 hours of driver time. The average shipment from Customer 2 is 9000 pounds and 1800 cubic feet. Linehaul trailer capacity is 40,000 pounds and 3000 cubic feet, and the destination is 750 miles away. Delivery for Customer 2 involves a route that covers 9 stops, 85 miles, and takes 9.5 hours of driver labor. ABC charges Customer 2 $4.85 per hundred pounds. Charge per Cubic Feet $.45 Unit costs and productivity are as follows: Pickup and/or delivery fuel economy Linehaul fuel economy Cost per gallons for fuel Labor cost Pickup and/or delivery equipment cost Lindhaul equipment cost Depreciation Tractor Trailer Mainance and insurance (illing Res/Other)-Overhead 6.0 miles per gallon 8.0 miles per gallon $3.15 per gallon $22.00 per hour, pickup/delivery $20.00 per hour, dock Line Haul 5.40 per mile $25,000 tractor, $13,000 trailer $50,000 tractor, $15,000 trailer 5 years 7 years 5.18 per mile $5.45 per shipment iment includes both tractor and trailer) ABC Truckline is trying to determine which of two customers to serve, based on average profitability. The relevant facts are as follows: Customer 1 is picked up on Mondays. Customer 1 is on a pickup route that averages 23 stops, covers 60 miles during the route, and generally requires 11 hours of driver labor. The average shipment from Customer 1 is 600 pounds and 240 cubic feet. Linchaul trailer capacity is 40,000 pounds and 3000 cubic feet, and the destination 200 miles away. Delivery for Customer I is on a route that covers 16 stops, 45 miles, and takes 10.5 hours of driving ABC charges Customer 1 $5.25 per hundred pounds. Handling at origin and destination is 15 minutes at each end. Charge per Cubic feet S.64 Customer 2 is picked up on Wednesdays. Customer 2 is on a pickup route that averages 13 stops, covers 50 miles, and requires 9.5 hours of driver time. The average shipment from Customer 2 is 9000 pounds and 1800 cubic feet. Linehaul trailer capacity is 40,000 pounds and 3000 cubic feet, and the destination is 750 miles away. Delivery for Customer 2 involves a route that covers 9 stops, 85 miles, and takes 9.5 hours of driver labor. ABC charges Customer 2 $4.85 per hundred pounds. Charge per Cubic Feet $.45 Unit costs and productivity are as follows: Pickup and/or delivery fuel economy Linehaul fuel economy Cost per gallons for fuel Labor cost Pickup and/or delivery equipment cost Lindhaul equipment cost Depreciation Tractor Trailer Mainance and insurance (illing Res/Other)-Overhead 6.0 miles per gallon 8.0 miles per gallon $3.15 per gallon $22.00 per hour, pickup/delivery $20.00 per hour, dock Line Haul 5.40 per mile $25,000 tractor, $13,000 trailer $50,000 tractor, $15,000 trailer 5 years 7 years 5.18 per mile $5.45 per shipment iment includes both tractor and trailer)

Answer rating: 100% (QA)

Details Stops Mondays 23 Customer 1 16 Wednesdays 13 customer 2 9 Calculations Pickup and delivery f... View the full answer