Question: 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

Let's say you completed an analysis on a different opportunity and arrive

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)

Step by Step Solution

★★★★★

3.38 Rating (148 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the cost savings of shipping by rail now that fines are in play we need to consider bot... View full answer

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!

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Mnzel GmbH helps prospective homeowners of substantial means to find low-cost financing and assists existing homeowners in refinancing their current loans at lower interest rates. Mnzel works only...

10. Let us say you notice the following market trends. You are considering buying a house. How would you Backward Chain to a conclusion to buy or not? Rule 1 IF the price of homes is down THEN buy a...

Numeracy In a 2010 study on financial decision-making, peoples answers to three quick mathematics questions were strong predictors of their wealth: households where both spouses answered all three...

Arsenic acid, H3AsO4, is a poisonous acid that has been used in the treatment of wood to prevent insect damage. Arsenic acid has three acidic protons. Say you take a 26.14-mL sample of arsenic acid...

Lets say you want to purchase shares of Fontaine Ltd. and then hold this stock for six years. The company has a stated dividend policy of $2.00 annually per share for the next six years, at the end...

Say you work for a government agency that has sample median income of residents in Houston for every year from 1920 to 2018, with the exception of the year 1980 which is missing. A supervisor...

2. 11.2 Break-even analysis Given the base-case projections in the previous problem, what are the cash, accounting and financial break-even sales levels for this project? Ignore taxes in answering. A...

Some tumor cells characteristically re-express antigens found only early in normal development of that cell type. One example of this is which of the following protein/tumor pairs? A. CD20 and B cell...

Why is prioritization during the application of the EDM based on public interest? Discuss three ethical problems in 2022. Are they connection to technology and how might technologist power relate to...

Which can be classified as organizational cost of resistance to change?

Calculate the electron cyclotron frequency 2. in the following magnetic fields: (a) Earth's magnetic field near a pole, 6 * 10-5T (b) nuclear fusion reactor, 5 T and (c) the near-Earth solar wind 5 *...

69. Many medical laboratory tests are run using 5.0 uL blood serum. What is this volume in milliliters?

For the above plot of the ellipsoid (xa)2+(yb)2+(zc)2=1, find the parameters a,b and c. Note that a,b and c are positive integers between 1 and 6 inclusive. Use the mouse to rotate the...

Give an example of a responsibility center in a university.

Kronecker Company, a growing mail-order clothing and accessory company, is concerned about its growing MSDA expenses. It therefore examined its customer ordering patterns for the past year and...

Are fixed costs always irrelevant?

Solve each of the following pairs of equations. Verify your solution Y = 2 x 7 x - y = 35

Solve each of the following pairs of equations to three-figure accuracy. 0.03x+0.05y=51 0.8x- 0.7y =140

Solve the following the equation. It should be accurate to the cent.