Smith Equipment has three separate shipments to customers all in the same city.The shipment weights are 20,000 lbs.25,000 lbs.,and 10,000 lbs.Smith Equipment's carrier charges $14 per hundredweight (cwt) if each shipment is sent separately.If the three shipments are consolidated at Smith Equipment's warehouse and sent in a single truck,the carrier charges $11 per cwt with a $500 consolidated delivery fee per destination added.Smith Equipment should
A) send the shipments separately at a savings of $1,500.
B) consolidate the shipments at a savings of $1,635.
C) consolidate the shipments at a savings of $150.
D) either choice-the shipment costs are equal.
Correct Answer:
Verified
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