Liquid Bulk Truckload You are a manufacturer of liquid chemicals, in particular monoethylene glycol (MEG). Your customers typically order full truckloads of product and demand that the delivery terms are "delivered" (meaning the cost of transportation is included in the price per pound of product). You are located in Greensboro, NC. These trucks hold approximately 5,000 gallons of MEG that weighs 9.28 lbs. (pounds) per gallon.

Q1. How much does a full truckload weigh? (Gal x lbs. per gal) ____________________________ The average price of this product is $841 per metic ton to the customer. A metric ton of MEG is 237.567 gallons. The cost to produce this product is $0.252 per pound.

Q2. What is the sales revenue (weight x price) of a full truckload? _____________

One customer in Chattanooga, TN is 396 miles away. Transportation costs $1.855 per mile plus a $675 cleanout fee.

Q3. What is the total cost of transportation including the cleanout fee? ___________________

Q4. What is the total cost of the delivered product (product cost + transportation cost)? ____________

Q5: What is the profit on each load of product? (revenue - total cost) _________________

Another customer in Mobile, AL is 659 miles away. They are also paying a price on a delivered basis, but the price is higher at $2.95 per pound. For the last two shipments, the customer has requested that only 18,000 pounds be delivered, not the full truckload.

Q6: What is the revenue for this truckload delivery? _________________

Q7: Given the same cost per mile and cleanout fee, what is the cost of Transportation? _________

Q8: What is the total cost of the delivered product (product cost + transportation cost)? ____________

Q9: What is the profit on each load of product? ____________