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Let's say you completed an analysis on a different opportunity and arrive at a cost savings of $200,000 per year if you used rail without any fine risk. You had yearly shipments of 65 shipments for rail and 60 shipments for truck in your analysis. Your customer now decides to start to fine you for late shipments at $1,500 per shipment, and the likelihood of a fine for truckload carriers is 25% and likelihood of a fine is 55% for railroad shipments, what is the cost savings of shipping rail now that fines are in play? (6 pts) Let's say you completed an analysis on a different opportunity and arrive at a cost savings of $200,000 per year if you used rail without any fine risk. You had yearly shipments of 65 shipments for rail and 60 shipments for truck in your analysis. Your customer now decides to start to fine you for late shipments at $1,500 per shipment, and the likelihood of a fine for truckload carriers is 25% and likelihood of a fine is 55% for railroad shipments, what is the cost savings of shipping rail now that fines are in play? (6 pts)
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To calculate the cost savings of shipping by rail now that fines are in play we need to consider bot... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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