Question

A company needs to have 25,000 pounds of material trucked from plant A to plant C. It also needs to truck 30,000 pounds of another material from plant B to plant C. The company’s carrier quoted them a cost of $18.00 per hundredweight for two separate shipments to plant C, or a cost of $15.00 per hundredweight if one truck picks up both shipments (with a $1,500.00 charge for the consolidation stop).
Which of the following is correct?

A. The two separate shipments are the low-cost option by $1,500.00.
B. The consolidated shipment is the low-cost option by $1,650.00.
C.The consolidated shipment is the low-cost option by $150.00.
D. Both options have the same cost.

Answer 1

The answer to this is b