Question: Microtech Incorporated has decided to package its cell phone in a smaller, recyclable package. Additionally, the company will discontinue the practice of shipping each phone
Microtech Incorporated has decided to package its cell phone in a smaller, recyclable package. Additionally, the company will discontinue the practice of shipping each phone with a 250-page user manual and instead will make the manual available online. These changes will result in a lighter, but more difficult package for shippers to handle. The weight of each packaged phone has dropped from 1.5
pounds to 0.5 pounds as a result of these changes and the freight classification has worsened from
65 to 85. Use the table below to calculate the difference in Microtech's monthly shipping charges if the company ships 10,000 phones per month.
Matrix of Weight Breaks and Freight Class ($/cwt)
| Class | <500 (lbs) | 500 (lbs) | 1,000 (lbs) | 2,000 (lbs) | 5,000 (lbs) | 10,000 (lbs) | 20,000 (lbs) |
| 50 | 25.73 | 21.24 | 18.19 | 17.28 | 13.19 | 11.81 | 7.85 |
| 55 | 27.71 | 22.88 | 19.59 | 18.62 | 14.2 | 13.06 | 8.69 |
| 60 | 29.69 | 24.52 | 20.99 | 19.95 | 15.22 | 14.31 | 9.52 |
| 65 | 31.46 | 25.98 | 22.25 | 21.14 | 16.12 | 15.2 | 10.11 |
| 70 | 33.48 | 27.65 | 23.67 | 22.49 | 17.16 | 16.46 | 10.94 |
| 77.5 | 36.08 | 29.79 | 25.51 | 24.24 | 18.49 | 17.89 | 11.9 |
| 85 | 38.93 | 32.15 | 27.53 | 26.15 | 19.95 | 19.68 | 13.09 |
| 92.5 | 41.92 | 34.61 | 29.64 | 28.17 | 21.48 | 21.29 | 14.15 |
| 100 | 45.2 | 37.33 | 31.96 | 30.38 | 23.17 | 23.08 |
Before the changes in packaging, shipping costs are per month.(Enter your response rounded to two decimal places.)
After the changes in packaging, shipping costs are per month.(Enter your response rounded to two decimal places.)
Thus, the new packaging will
Lower shipping costs by per month. (Enter your response rounded to two decimal places.)
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