Question

Hadron Company incurred 40,000 to ship 19,000 pounds and34,000 to ship 16,000 pounds. If the company ships 18,000 pounds, what is its expected shipping expense?

1) $36,000
2) $38,000
3) $40,000
4) $42,000

Answer 1

The expected shipping expense for Hadron Company when shipping 18,000 pounds is $38,160.

Step-by-step explanation:

To determine the expected shipping expense for Hadron Company, we need to calculate the average cost per pound of shipping. First, we calculate the cost per pound for the first shipment: $40,000 / 19,000 pounds = $2.11 per pound. Then, we calculate the cost per pound for the second shipment: $34,000 / 16,000 pounds = $2.13 per pound.

To find the expected shipping expense for 18,000 pounds, we use the average cost per pound we calculated: $2.11 + $2.13 / 2 = $2.12 per pound.

Finally, we multiply the average cost per pound by the weight of the shipment: $2.12 * 18,000 pounds = $38,160.

Therefore, the expected shipping expense for Hadron Company when shipping 18,000 pounds is $38,160.