Question: California. New loading facilities will be needed to accommodate the expected growth in sales for their new product. In 2 0 1 8 , the

California. New loading facilities will be needed to accommodate the expected growth in sales for their new product. In 2018, the company shipped 3.5 million pounds of product through several areas in San Diego. The logistic Costs in 2018 are given in the table. Due to growth in emerging markets, the company expects a growth rate of 8% per year through this port for the next five years.
Rail
Truck
Transportation Variable Cost $ 170,000,$,310,000
Inventory Costs
Carrying
40,000
25,000
handling
15,000
40,000
Ordering
5,000
15,000
Fixed Cost
160,000
90,000
Total Cost
$,390,000
480,000
What is the total variable cost of each transportation method (Rail and Truck, respectively)?
$390,000&$480,000
 California. New loading facilities will be needed to accommodate the expected

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!