Answer:
C. No, it will increase cost by $100.
Explanation:
Z Corp. can make three individual deliveries to three different customers at a cost of $500 each
Given that:
Cost of shipment = $1300
Cost of each delivery = $500
Stop of charge = $100 per stop
Total cost if for individual delivery to three different customers = 3($500) = $1500
Since they are three different customers, the total stop charge = 3($100)
cost for consolidating them into one shipment= $1300 + 3($100) = $1300 + $300 = $1600
Therefore there is an increase in cost of $1600 - $1500 = $100
Answer:
Decision: reject the option to deliver the products together as it costs more by $100.
Explanation:
Z corp.
Option A (Deliver to each customer)
Total Delivery cost = $500 x 3 = $1,500
Option B (Deliver together to all 3 customers)
Total Delivery cost = $1,300 x 1 + ($100 x 3)= $1,600
Compare A & B = $1,500 minus $1,600 = -$100
Decision: reject the option to deliver the products together as it costs more by $100.
