5. A manufacturer has been shipping his product (moderately heavy machines), mounted only on skids without complete crating. To avoid crating he must ship in freight cars which contain only his machines. To do this he must pay freight on a car capacity load of 42 tons regardless of whether or not the car is completely full. In the past he actually has shipped only 30 tons in each car. The car load freight rate is P4.10 per hundred pounds. If the machines are crated so that they can be shipped in mixed car lots, along with other merchandise,

5. A manufacturer has been shipping his product (moderately heavy machines), mounted only on skids without complete crating. To avoid crating he must ship in freight cars which contain only his machines. To do this he must pay freight on a car capacity load of 42 tons regardless of whether or not the car is completely full. In the past he actually has shipped only 30 tons in each car. The car load freight rate is P4.10 per hundred pounds. If the machines are crated so that they can be shipped in mixed car lots, along with other merchandise,

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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