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1. You need to ship 18250 lbs of good, which rate will you select to ship your goods? What is the weight break? Assume LTL rate is $1.10 per 100 lbs and TL rate is $0.87 per 100 lbs, and TL minimum load is 20,000 lbs.
Expert Answer
Number of 100 batches in 18250 = 183
Cost under LTL = 183*1.10 = $201.3
Cost under TL = 200*0.87 = 174
Since, TL is giving lower total cost, one will choose the TL rate
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Weight break (X)
Equating the two costs
1.1*x = 0.87*200
X= 158.18
