000 pounds each going from different nearby cities to one retail store. The carrier charges $10 per hundredweight (cwt). If the shipments are consolidated into one truck
the carrier will take the 30
000 pounds for $7 per cwt
but charges $300 each for the two extra stops.Should the company consolidate the three shipments?Cost to ship separately in three trucks is:Cost = 10
000 ($10/100 pounds)*(3 shipments) = $1
000 * 3 = $3
000 Cost to consolidate the three shipments is:Cost = 30
000 ($7/100 pounds) + $300*(2) = $2
100 + $600 = $2
700Consolidating the shipments costs less.