Question

'13.4. A company ships a particular product to a market located 1500 miles from the plant at a cost of $4.50 per mile. Normally it ships 500 units at a time. What is the line haul cost per unit

Answer 1

Answer: $13.50

Step-by-step explanation:

The following information can.be deduced from the question:

Distance covered = 1500 miles

Cost per mile = $ 4.50

We need to calculate the total cost of the transportation first. This will be:

= 1500 x $4.50

= $6750

We are further told that it normally ships 500 units at a time.

Therefore, tge line haul cost per unit will be:

= $6750/500 = $13.50