Im studying business management in Denmark, as the only native English speaker in the class i need help clarifying this problem. The class seems split 50/50 including the teacher on what the right answer is.
Question:
A company processes feathers and ships them loose in a covered truck. The line-haul cost for an average shipment is $400, and the truck carries 2000 pounds of feathers. A bright new graduate has just been hired and has suggested that they should bale the feathers into 500-pound bales. This would make them easier to handle and also allow them to be compressed into about one-tenth of the space they now occupy. How many pounds of feathers can the truck now carry? What is the present line-haul cost per pound? What will it be if the proposal is adopted.
The confusion seems to be, would the feathers once compressed take up 1/10 of the original 2000 pounds or 500 pound bales take up 10th of the truck space
Line-haul cost equation is just cost/weight
Many thanks for the help!
Question:
A company processes feathers and ships them loose in a covered truck. The line-haul cost for an average shipment is $400, and the truck carries 2000 pounds of feathers. A bright new graduate has just been hired and has suggested that they should bale the feathers into 500-pound bales. This would make them easier to handle and also allow them to be compressed into about one-tenth of the space they now occupy. How many pounds of feathers can the truck now carry? What is the present line-haul cost per pound? What will it be if the proposal is adopted.
The confusion seems to be, would the feathers once compressed take up 1/10 of the original 2000 pounds or 500 pound bales take up 10th of the truck space
Line-haul cost equation is just cost/weight
Many thanks for the help!