War Eagle Distributing wants to determine the most efficient method of transporting its new product- The Charles Barkley Paperweight. This item has been offered for sale for several years, but Mr. Barkley's public persona and popularity have grown steadily, and the 6-year forecast calls for year 1 sales of 1,000 pallets, with year 2-6 sales increasing by 400 pallets each year. Estimated year 1 costs of two transportation options being considered are shown below: Mode A Mode B Variable Costs Transportation Costs $240,000 $270,000 Inventory Cost $100,000 $30,000 Packaging Costs $120,000 $30,000 Fixed Cost $160,000 $420,000 Total Cost $620,000 $750,000 Question 1 3 / 3 pts What is the variable rate (b in the y = a bx formula) for Mode A in $/pallet? 

Answer rating: 100% (QA)

To find the variable rate b for Mode A in pallet we need to divide the tota... View the full answer