QUESTION 38

1. A firm is considering three different logistics systems (public warehousing, joint-warehousing, private-warehousing). The following is the cost information for the systems with changing volume. System Fixed costs Variable costs/Unit 1 $20000 $1.00 2 $35000 $0.80 3 $50000 $0.30 (a)What is the trade-off point (volume) between System 1 and System 2? What is the related total cost at the trade-off point?

   	a.	Trade-off point at 35000 units, $95000 cost.
   	b.	Trade-off point at 75000 units, $95000 cost.
   	c.	Trade-off point at 50000 units, $85000 cost.
   	d.	Trade-off point at 95000 units, $75000 cost.
   	e.	Trade-off point at 30000 units, $35000 cost.

1 points

QUESTION 39

1. (b) (Continued from above) What is the trade-off point (volume) between System 2 and System 3? What is the related total cost at the trade-off point?

   	a.	Trade-off point at 35000 units, $95000 cost.
   	b.	Trade-off point at 75000 units, $95000 cost.
   	c.	Trade-off point at 50000 units, $85000 cost.
   	d.	Trade-off point at 95000 units, $75000 cost.
   	e.	Trade-off point at 30000 units, $59000 cost.

1 points

QUESTION 40

1. (c) (Continued from above) At 45000 units, which system should be used based on total costs?

   	a.	System 1
   	b.	System 2
   	c.	System 3