The premium for 3-5 day shipping is 20%. What is the cost to ship 1,500 lbs of goods from Louisville to New Orleans (708 miles) using 3-5 day shipping?
| Distance (miles) | 0-200 | 201-400 | 401-600 | 601-800 | 801-1000 |
| :--------------- | :---- | :------ | :------ | :------ | :------- |
| Price per 100 lbs | $100 | $120 | $200 | $240 | $400 |
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Answer (2)
Determine the price per 100 lbs for the given distance: $240.
Calculate the number of 100 lbs units: 100 1500 = 15 .
Calculate the base shipping cost: 15 × $240 = $3600 .
Calculate the total shipping cost including the 20% premium: $3600 + 0.20 × $3600 = $4320 .
Explanation
Problem Analysis We are given the task of calculating the total cost to ship 1,500 lbs of goods from Louisville to New Orleans (708 miles) using 3-5 day shipping, which includes a 20% premium. The cost is based on the distance and weight, as shown in the provided table.
Finding the Base Shipping Cost First, we need to determine the base shipping cost without the premium. According to the table, the price per 100 lbs for a distance between 601-800 miles is $240.
Calculating the Number of Units Next, we calculate the number of 100 lbs units in 1,500 lbs: 100 lbs/unit 1500 lbs = 15 units .
Calculating the Base Cost Now, we calculate the base shipping cost by multiplying the number of units by the price per 100 lbs: 15 units × $240 /unit = $3600 .
Calculating the Premium The premium for 3-5 day shipping is 20% of the base cost. So, we calculate the premium amount: 0.20 × $3600 = $720 .
Calculating the Total Cost Finally, we calculate the total shipping cost by adding the base cost and the premium: $3600 + $720 = $4320 .
Final Answer Therefore, the total cost to ship 1,500 lbs of goods from Louisville to New Orleans using 3-5 day shipping is $4320.
Examples
Imagine you're running a small business that ships goods across the country. Understanding shipping costs, including premiums for faster delivery, is crucial for budgeting and pricing your products competitively. This problem demonstrates how to calculate those costs accurately, ensuring you can offer the best shipping options to your customers while maintaining profitability. By understanding these calculations, you can make informed decisions about shipping methods and negotiate better rates with carriers.
The total shipping cost for 1,500 lbs of goods from Louisville to New Orleans with a 20% premium for 3-5 day shipping is $4,320. This is calculated using the base rate for the distance and adding the premium for faster delivery. The calculations include determining the number of units and the costs associated with shipping.
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