b. Mr. Berry has coordinated back-haul moves for the Conquistador shipments above
with a new customer in Youngstown, Ohio. The new customer, Super Tread, Inc.,
ships tires from its plant in Youngstown to the port in Bayonne for exporting. Each
Conquistador shipment will be accompanied with a return shipment from Super
Tread (12 truckloadslmonth). Speedy will charge Super Tread $1.30 per mile.
Bayonne is 430 miles from Youngstown. The distance from Pittsburgh to
Youngstown is 65 miles. Trucks must return to the terminal in Seacaucus upon
delivering product from the back-haul (before picking up again at Bayonne). The
terms of the Conquistador agreement outlined in part (a) remain intact. How much
can Mr. Berry expect Speedy to profit (lose) per trip from the new arrangement?
c. How much can Mr. Berry expect Speedy to profit (lose) per month from the new