Miller Corp.can make three individual deliveries to three different customers at a transportation cost of $600 each or can consolidate them into one shipment with a transportation cost of $1,200 and a stop-off charge of $100 per stop.Should Miller Corp.consolidate the shipments?
A)Yes,it will save $100.
B)Yes,it will save $300.
C)No,it will increase cost by $100.
D)It doesn't matter based on cost.

Question

Quizplus · Accepted Answer

Consolidating the shipments would cost $1,200 for the shipment plus $300 for three stop-offs ($100 each), totaling $1,500. Individually, the shipments would cost $600 each, totaling $1,800. Therefore, consolidating saves $300 ($1,800 - $1,500).