Amazon is shipping 15429 lbs of merchandise overseas; it negotiated with a global freight forwarder on the following issues.
LTL rate = $0.98 per 100 lbs
TL rate = $0.72 per 100 lbs
Minimum required load to get a TL rate = 21,000 lbs
What is the weight break in this scenario?
Which rates will it chose for this particular shipment?
How much additional money it has to pay if it wants to ship an additional 500 lbs of merchandise on top of 15429 lbs?
How much money will it save if it wants to reduce its shipment by 500 lbs from 15429 lbs
The weight break in this scenario is $205.70 with the LTL carrier
For this particular shipment it will choose the LTL rate i.e. $0.98
For shipping an additional 500lbs of merchandise on top of 15429lbs, it needs to pay additional money of$102,850
It will save $102,850 it wants to reduce its shipment by 500lbs from 15429lbs