What is the total cost of moving the current order


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)

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