FirstRate Transportation (FRT) has retained the service of Newco to evaluate the profitability and costing strategy...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
FirstRate Transportation (FRT) has retained the service of Newco to evaluate the profitability and costing strategy of a request for quote before FRT submits their price on the lanes. FRT has been invited to bid on several new long-haul lanes originating from 50 Kenview Blvd, Brampton, Ontario Canada and ending at 355 Morgan Lakes Industrial Blvd, Savannah, Georgia, USA. Eighty percent of FRT business involves short- haul moves and venturing into the Long-haul sector is new to them. The Newco team has been retained to establish a price per mile that FRT should propose and submit in the RFQ. Route details Brampton yard-truck and trailer and dispatch area Cross-dock loading facility 20 KM from the yard Cross-dock facility is operated by FRT- Shunt drivers pull empty trailers from yard and drops trailer in the door at the cross-dock facility Long haul drivers pull the loaded trailer to the delivery facility in savannah Georgia, Once freight is unloaded in Georgia the route is technically over. FRT will either need to deadhead back to the Brampton yard or arrange some type of backhaul load. Refer to the cost data set to calculate the fixed and variable cost per mile. Ensure all regulations regarding driver on duty requirements are met. Assume straight line deprecation with a zero-salvage value for both the tractors and trailers The shipment is 45000 pounds. The cross dock requires two operators to prepare the load for 8 hours. Preparation time which includes unloading inbound freight, sorting and loading the outbound trailer. Assignment questions/Details 1. Calculate the pick up, sort, line-haul and delivery costs. Use the data sheet provided. 2. The route planning is open and to be designed by the Newco team. 3. Use the course material to obtain and calculate bench mark calculations. Hardee Transportation 1. Line-haul tractors 2. Line-haul Trailers 1. Tractors-straight line Years 2. Trailers- straight line Years Tractors Equipment Cost Datal Trailers 1. per gallon for diesel 2. Line-haul tractors - XX miles per gallon Fuel per mile Equipment Purchase Price cellaneous Insurace cost per mile Maintenance cost per mile Depreciation Interest Percent APR Years to payback Line- haul drivers XX per mile Pick up and deliver Shunt drivers -XX (fully loaded) per hour Dock Workers = XX(fully Loaded) per hour Percent APR Years to payback Fuel Labour Billing Cost per freight bill tractors and trailers are available for use 24 hours per day, 365 days per year Admin overhead cost percentage of total move Dock Facility Cost per hour Line-hual vehicle averages between origin and destination (MPH) Variables $160,000.00 $40,000.00 7 10 6% 5 6% 8 5.99 10 0.60 $ 0.45 $ 30.00 $ 35.00 $ 0.075 $ 0.200 $ 2.10 10% $ 18.00 45 Days in a year hours in a day hours in a year 365 24 8760 FirstRate Transportation (FRT) has retained the service of Newco to evaluate the profitability and costing strategy of a request for quote before FRT submits their price on the lanes. FRT has been invited to bid on several new long-haul lanes originating from 50 Kenview Blvd, Brampton, Ontario Canada and ending at 355 Morgan Lakes Industrial Blvd, Savannah, Georgia, USA. Eighty percent of FRT business involves short- haul moves and venturing into the Long-haul sector is new to them. The Newco team has been retained to establish a price per mile that FRT should propose and submit in the RFQ. Route details Brampton yard-truck and trailer and dispatch area Cross-dock loading facility 20 KM from the yard Cross-dock facility is operated by FRT- Shunt drivers pull empty trailers from yard and drops trailer in the door at the cross-dock facility Long haul drivers pull the loaded trailer to the delivery facility in savannah Georgia, Once freight is unloaded in Georgia the route is technically over. FRT will either need to deadhead back to the Brampton yard or arrange some type of backhaul load. Refer to the cost data set to calculate the fixed and variable cost per mile. Ensure all regulations regarding driver on duty requirements are met. Assume straight line deprecation with a zero-salvage value for both the tractors and trailers The shipment is 45000 pounds. The cross dock requires two operators to prepare the load for 8 hours. Preparation time which includes unloading inbound freight, sorting and loading the outbound trailer. Assignment questions/Details 1. Calculate the pick up, sort, line-haul and delivery costs. Use the data sheet provided. 2. The route planning is open and to be designed by the Newco team. 3. Use the course material to obtain and calculate bench mark calculations. Hardee Transportation 1. Line-haul tractors 2. Line-haul Trailers 1. Tractors-straight line Years 2. Trailers- straight line Years Tractors Equipment Cost Datal Trailers 1. per gallon for diesel 2. Line-haul tractors - XX miles per gallon Fuel per mile Equipment Purchase Price cellaneous Insurace cost per mile Maintenance cost per mile Depreciation Interest Percent APR Years to payback Line- haul drivers XX per mile Pick up and deliver Shunt drivers -XX (fully loaded) per hour Dock Workers = XX(fully Loaded) per hour Percent APR Years to payback Fuel Labour Billing Cost per freight bill tractors and trailers are available for use 24 hours per day, 365 days per year Admin overhead cost percentage of total move Dock Facility Cost per hour Line-hual vehicle averages between origin and destination (MPH) Variables $160,000.00 $40,000.00 7 10 6% 5 6% 8 5.99 10 0.60 $ 0.45 $ 30.00 $ 35.00 $ 0.075 $ 0.200 $ 2.10 10% $ 18.00 45 Days in a year hours in a day hours in a year 365 24 8760
Expert Answer:
Answer rating: 100% (QA)
1 To calculate the pickup sort linehaul and delivery costs well use the provided data Here are the specific calculations for each cost component 1 Pickup and Sort Costs Labor cost for dock workers ful... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
1. Company A recently put out a request for quote for the supply of new machines. Company A needs to purchase Forty (40) new machines each year for the next seven years. In order to bid on the...
-
The Trailer department of Sprint Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $100 each. Each trailer incurs $40 of...
-
The Trailer department of Soni Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $100 each. Each trailer incurs $40 of variable...
-
Mien Co. is budgeting sales of 53,000 units of product Nous for October and 60,000 units of product Nous for November. The manufacturing of one unit of Nous requires 4 kilos of chemical Loire. During...
-
On January 1, Payne Company issued $200,000, 8%, 10-year bonds at face value. Interest is payable semiannually on July 1 and January 1. Instructions Prepare journal entries to record the following....
-
A hemispherical droplet of liquid water, lying on a flat surface, evaporates by molecular diffusion through still air surrounding the droplet. The droplet initially has a radius R. As the liquid...
-
Consider the soft drink delivery time data in Example 3.1. Example 3.1 a. Find the simple correlation between cases \(\left(x_{1} ight)\) an distance \(\left(x_{2} ight)\). b. Find the variance...
-
When a tennis player serves, he gets two chances to serve in bounds. If he fails to do so twice, he loses the point. If he attempts to serve an ace, he serves in bounds with probability 3/8. If he...
-
4-0 stainless steel sutures used for orthopedic applications are subjected to a heat treating process. The sutures are drawn through an oven at a rate of 0.5 meters per minute. The oven temperature...
-
Macon Machines Company began operations on November 1, 2024. The main operating goal of the company is to sell high end robots. Customers may pay using cash or if appropriate, credit is extended to...
-
Starting salaries of 60 college graduates who have taken a statistics course have a mean of $42,954. Suppose the distribution of this population is approximately normal and has a standard deviation...
-
what laws govern business and consumer banking transactions?
-
The truck has an salvage value ofsz,400, andis epected to be diven 110.000 maesover as estimated useful Be of s years. Actual miles driven were 15,500 in 2017 and 13,800 in 2018 v (al Your answer is...
-
Discuss the role that wholesale banking plays in economic development?
-
discuss the interplay between internal and external conflicts in shaping the complexities of character motivations and actions within literary works ?
-
How the lending system is applied in the merchant of Venice?
-
Following is the information provided by khalid Sports Club: Cash in Hand Cash at Bank Ground Rent Entrance Fee Miscellaneous Expenses General Expenses Postage & Printing Closing Cash Balances...
-
Find the equation of the plane passing through the points P 5,4,3 ,Q 4,3,1 and R 1,5,4
-
The time between arrivals at the drive-through window of Barry Harmons fast-food restaurant follows the distribution given in the table. The service-time distribution is also given. Use the random...
-
Identify and briefly describe the two general forecasting approaches.
-
The three-station work cell illustrated in figure S7.7, has a product that must go through one of the two machines at station 1 (they are parallel) before proceeding to station 2. (a) What is the...
-
Nestls financial statements are presented in Appendix B. Financial statements of Delfi Limited are presented in Appendix C. Instructions Refer to the financial statements and answer the following...
-
Writing Financial statement information about four different companies is as follows. Instructions a. Determine the missing amounts. (Hint: For example, to solve for (a), Assets Liabilities = Equity...
-
The financial statements of TSMC are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the companys website. Instructions Refer to...
Study smarter with the SolutionInn App