Business, 11.02.2021 23:10 fia31

Which of the following customers should ABC Truckline serve and why should they choose that customer to serve based on the relevant facts below? Please include a breakdown of your thoughts for reference. ABC Truckline is trying to determine which of two customers to serve, based on average profitability. The relevant facts are as follows:
Customer 1 is picked up on Mondays. The pickup is part of a route that averages 23 stops, covers 60 miles during the route, and generally requires 11 hours of driver labor. The average shipment from Customer 1 is 600 pounds and 240 cubic feet. Linehaul trailer capacity is 40000 pounds and 2880 cubic feet, and the destination 200 miles away. Delivery for Customer 1 involves a route that covers 16 stops, 45 miles, and takes 10.5 hours of driving. ABC charges Customer 1 $5.25 per hundred pounds. Handling at origin and destination is 15 minutes at each end.
Customer 2 is picked up on Wednesdays. The pickup is part of a route that averages 13 stops, covers 50 miles, and requires 9.5 hours of driver time. The average shipment from Customer 2 is 9000 pounds and 1800 cubic feet. Linehaul trailer capacity is 42000 pounds and 3000 cubic feet, and the destination is 750 miles away. Delivery for Customer 2 involves a route that covers 9 stops, 85 miles, and takes 9.5 hours of driver labor. ABC charges Customer 2 $4.85 per hundred pounds.
Unit costs and productivity are as follows:
Pickup and/or delivery fuel economy 8.0 miles per gallon
Linehaul fuel economy 6.0 miles per gallon
Cost per gallon for fuel $2.50 per gallon
Labor cost $22.00 per hour; pickup/delivery, $20.00 per hour; dock, $22.00 per hour or $.36 per mile
Pickup and/or delivery equipment cost $25,000 tractor; $13,000 trailer
Linehaul equipment cost $50,000 tractor; $15,000 trailer.
Depreciation: Tractor 5 years Trailer 7 years
Maintenance and Insurance $.18 per mile
Billing/Rent/Other $4.45 per shipment
(Equipment includes both tractor and trailer)
I need your opinion on why you would choose one or the other...not just a breakdown in numbers but WHY you would choose to go with A or B.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 13:10

Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas's fastest-moving inventory item has a demand of 6,000 units per year. the cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. the average ordering cost is $30 per order. it takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (this is a corporate operation, and the are 250 working days per year.)a) what is the eoq? b) what is the average inventory if the eoq is used? c) what is the optimal number of orders per year? d) what is the optimal number of days in between any two orders? e) what is the annual cost of ordering and holding inventory? f) what is the total annual inventory cost, including cost of the 6,000 units?

Answers: 3

Answer

Business, 22.06.2019 14:40

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.

Answers: 3

Answer

Business, 22.06.2019 21:50

Labor unions have used which of the following to win passage of favorable laws such as shorter work weeks and the minimum wage? a. strikes b. collective bargaining c. lobbying d. lockouts

Answers: 1

Answer

Business, 22.06.2019 23:30

As a result of a thorough physical inventory, waterway company determined that it had inventory worth $320200 at december 31, 2020. this count did not take into consideration the following facts: walker consignment currently has goods worth $47400 on its sales floor that belong to waterway but are being sold on consignment by walker. the selling price of these goods is $75900. waterway purchased $21900 of goods that were shipped on december 27, fob destination, that will be received by waterway on january 3. determine the correct amount of inventory that waterway should report.

Answers: 2

Answer

You know the right answer?

Which of the following customers should ABC Truckline serve and why should they choose that customer...

Questions