A company has a line haul cost between Point A and Point B of $5 per mile. The distance between the two points is 750 miles. What is the cost per hundredweight (cwt) for a shipment weighing 45,000 pounds?
A) $0.12
B) $5.00
C) $8.33
D) $9.00

Question

Quizplus · Accepted Answer

To find the cost per cwt, we need to first find the total cost of transportation for the shipment.
Total cost = distance x line haul cost per mile
Total cost = 750 miles x $5/mile
Total cost = $3750
Now, we need to find the cost per pound:
Cost per pound = total cost / total weight
Total weight = 45,000 pounds
Cost per pound = $3750 / 45,000 pounds
Cost per pound = $0.08333
To find the cost per cwt, we need to multiply the cost per pound by 100:
Cost per cwt = cost per pound x 100
Cost per cwt = $0.08333 x 100
Cost per cwt = $8.33, which is option C.

A Company Has a Line Haul Cost Between Point a and Point