Silversleeves, SA., shipped 18,000 tons of silver for £450,000 in January and 22,000 tons for £549,000 in February. Shipping costs for 21,000 tons to be shipped in March would be expected to be
A)£548,111.
B)£499,500.
C)£524,250.
D)none of the above.

Question

Quizplus · Accepted Answer

To find the shipping cost per ton, we first need to calculate the cost per ton for the two months already shipped.

For January: 
Cost per ton = £450,000 / 18,000 tons = £25/ton

For February: 
Cost per ton = £549,000 / 22,000 tons = £24.95/ton

Taking the average of these two costs gives us an estimated cost per ton for March:

(£25/ton + £24.95/ton) / 2 = £24.975/ton

Multiplying this cost per ton by the 21,000 tons to be shipped in March gives us:

£24.975/ton * 21,000 tons = £524,250

Therefore, the expected shipping cost for 21,000 tons to be shipped in March would be £524,250.