Q#7: Compare and contrast the similarities and differences between freight broker and a freight forwarder. When Is it appropriate to use one but not the other? Freight Broker Freight Forwarder Definition: Differences: Similarities: Best Used: Q#8: Propose a flat rate for each of the five zones using a cost/CWT. Zone A Zone B Zonec Zone D Zone E $ $ s $ $ CO ASM Q8. Zone A example Step 1. Identify the margins for MT Freight Forwarding (you will use these margins for the remaining zones. MT Freight Forwarding falls in the $5M-$50M range. The amount of transportation purchased is 65.4%. That means that 65.4% of their revenues charged to clients goes towards procuring transportation. EBITDA margins are 6.3%. This means that 6.3% of their revenues are profits before Interest, taxes and depreciation. Remaining margins 28.3%. This means that 28.3% of their revenues goes to cover all other aspects of the business including operating expenses, general administrative expenses, etc Step 2. Identify correct rates Zone A shipments for the prior year: 56,250,000 falling into the 30,000+ lbs, category Rate for Zone A at 30,000+ lbs. is $1.48 Step 3. Identify "should be rates to negotiate for ConSort wants to ensure that MT Freight Forwarding will be able to maintain their margins and they believe that they face similar cost structures. As such, they feel that the $1.48 for Zone A should be 65.4% of rates that they are paying MT Freight Forwarding (MT Freight Forwarding Rate 65.4% = $1.48) Backing it out. We find that the rates Consort should be negotiating for is $2.26, and the proposed flat rate for Zone A