question 2 parts a,b, and C

Problem 2) (18 points) Astro Industries of Minneapolis, MN, makes weekly shipments to 18 customers in the Dallas area. Each customer's order weighs, on average, 1,250 pounds. A direct truck shipment from Minneapolis to Dallas costs $1,200. The maximum load per truck is 24,000 pounds. a) How much would it cost Astro to make direct, single-order shipments to all of its customers each week? What would the utilization level for the trucks look like? (5 points) b) Suppose a Dallas-based warehousing firm has agreed to run a break-bulk warehousing operation for Astro at a cost of $60 per hundred-weight. Local deliveries to each customer would tack on another $125 per customer per week. How much money could Astro save by going with the break-bulk solution? What would the utilization level for truck be in this case? (8 points) c) How high would the warehousing cost (currently at $60 per hundred-weight) have to be before break-bulk warehousing is no more attractive than direct shipments? (5 points) Note: You can solve Parts a and b together as we did in class practice