Question: LTL Rates $ 7 . 2 5 M 2 M lbs . $ 5 . 7 5 M 5 M lbs . $ 4 .

LTL Rates
$7.25 M2M lbs.
$5.75 M5M lbs.
$4.00 M10M lbs.
A. What is the breakpoint between the 2M and 5M rate?
B. What is the breakpoint between the 5M and 10M rate?
C. How much would it cost (in $/cwt.) to ship 9000 lbs.?
Show your work for possible partial credit.
Question 2--Use the following information to answer the question.
Customer Shipment wt. LTL Rate/Min ($/cwt.)
Customer A 8700 lbs. $6.65/10000 lbs.
Customer B 5800 lbs. $7.40/5000 lbs.
Customer C 2000 lbs. $8.50/2000 lbs.
Customer D 9550 lbs. $6.25/10000 lbs.
Total 26050 lbs.
Line haul truckload rate from Origin to Dist. $2.70/cwt. @ 30,000 lb. min
Handling cost at Distributor (no minimum wt.) $1.00/cwt.
Local Delivery Rate (no minimum wt.) $2.15/cwt.
How much do you save by pooling vs. shipping at the given LTL rates? Hint:
You do not need to worry about calculating breakpoints to answer this question
but pay attention to minimum weights. Show your work.
Show your work for possible partial credit.

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