The traffic manager of the Monarch Electric Company has just received a ratereduction
offer from a trucking company for the shipment of fractional horse-power
motors to the company’s field warehouse. The proposal is a rate of $3 per
hundredweight (cwt.) if a minimum of 40,000 pounds is moved in each shipment.
Currently, shipments of 20,000 pounds or more are moved at rate of $5 per cwt. If the
shipment size falls below 20,000 pounds, a rate of $9 per cwt. applies.
To help the traffic manager make a decision, the following additional