Business Finance Homework Help

1. For the following scenario, calculate the total cost for this shipment of truckload freight:

A customer has 48 pallets of consumer goods that they need transported from their manufacturing plant in Joliet, IL to their warehouse located in Philadelphia, PA. The distance between these two locations is 765 miles. The 48 pallets will fit into one truckload. They want to hire Saints Trucking Company to haul this shipment for them in one of their tractor-trailer trucks. Saints has a reputation for careful freight handling and arriving to the destination when promised. The Saints truck driver needs to pick up the freight at the facility in Joliet, drive to Philadelphia, and then unload at the warehouse in Philadelphia. Each loading or unloading activity takes one hour.

2. If the driver arrived at the Joliet facility at 8am on Monday (and assume the manufacturer was ready to start the loading process at that time), when would the driver be ready to leave the facility in Philadelphia? When would Saints promise that the shipment would arrive?

3. If the Saints trucking company uses a pricing model similar to cost-of-service, and they charge 20% above the cost of service (for their profit margin), what would the customer pay for this shipment?

Assume no costs for the driver or truck/trailer to get to Joliet, or to leave Philadelphia.

Driver Information:
Driver labor (while driving or working): $ per hour	30
Driver labor (any non-work time away from home): $ per hour	15
Overnight cost for driver meals, lodging, etc. $ per night away from home	100
Maximum hours driver can drive without a break: in hours	9
Minimum break length: in hours (after which the driver can drive again)	8
Truck Information:
Truck fuel cost: $ per mile	3
Insurance and Maintenance cost: $ per mile	0.25
Average speed of travel: in miles/hour	45
Cost of truck when it is not being driven: $ per hour	20

This work must be done in less than 24 hours