Determine the transportation cost of the Anita Enterprises option if the Onion Shack purchases 240,000 bags of Vidalia onions each year.
Understand the Problem
The question asks to calculate the transportation cost for Onion Shack if they purchase 240,000 bags of Vidalia onions annually using Anita Enterprises, the pertinent information to solve the question is in the provided image.
Answer
$32,400
Answer for screen readers
$32,400
Steps to Solve
- Identify the relevant information from the table for Anita Enterprises
According to the table, Anita Enterprises ships at a cost of $1.35 per cwt (hundredweight) when shipping 2500+ bags.
- Convert bags to cwt (hundredweight)
We know that 1 bag = 10 pounds, and 1 cwt = 100 pounds
So 1 bag = 10/100 = 0.1 cwt
- Calculate total cwt shipped annually
Onion Shack purchases 240,000 bags annually
Total cwt = $240,000 \text{ bags } \times 0.1 \text{ cwt/bag } = 24,000 \text{ cwt}$
- Calculate the transportation cost using Anita Enterprises
Transportation cost = Total cwt $\times$ Cost per cwt
Transportation cost = $ 24,000 \text{ cwt } \times $1.35 \text{/cwt} = $32,400 $
$32,400
More Information
The total transportation cost for Onion Shack if they purchase 240,000 bags of Vidalia onions annually using Anita Enterprises is $32,400.
Tips
A common mistake might be using the wrong shipping cost or misinterpreting the units (bags vs. cwt). Always double-check the table and ensure the units are consistent before performing calculations.
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