Your company sells "widgets" (this is not important) that weigh 25 pounds each and you palletize them into lots of 750 widgets on a pallet. You send them to a distribution center 120 miles away from the factory. The current order is 20,250 widgets.
1. Trucking company A says it will only charge 70 cents per ton per mile per widget to load on to a truck that holds 57,000 pounds. (Remember, it takes a lot of labor to load each truck!). What is the total cost of moving the current order of 20,250 widgets using this company?
2. Trucking company B says it will charge 50 cents per ton per mile per pallet to load on to a truck that holds 57,000 pounds. (A lot less labor costs...one guy with a very large forklift!). What is the total cost of moving the current order of 20,250 widgets using this company?
3. Which trucking company offers a better deal?
(Hint: the charge is per ton and one (1) ton equals 2,000 pounds)