The premium for 2-day shipping is $40\%. What is the cost to ship 2,000 lbs of goods from Denver to Kansas City (620 miles) using 2-day shipping?
| Distance (miles) | $0 - 200$ | $201 - 400$ | $401 - 600$ | $601 - 800$ | $801 - 1000$ |
| :--------------- | :-------- | :-------- | :-------- | :-------- | :--------- |
| Price per 100 lbs | $100 | $120 | $200 | $240 | $400 |
Answer (1)
Determine the base shipping cost: The distance falls into the 601-800 mile range, costing $200 per 100 lbs.
Calculate the number of 100 lbs units: 2,000 lbs / 100 lbs/unit = 20 units.
Calculate the base shipping cost: 20 units * $200/unit = $4000.
Calculate the 2-day shipping premium: $4000 * 40% = $1600, and the total shipping cost: $4000 + $1600 = $5600 .
Explanation
Problem Analysis We are asked to find the total cost to ship 2,000 lbs of goods from Denver to Kansas City (620 miles) with a 40% premium for 2-day shipping. We will first calculate the base shipping cost and then add the premium.
Finding the Base Price First, we need to determine the base shipping cost without the premium. The table provides the price per 100 lbs for different distance ranges. Our shipping distance is 620 miles, which falls into the 601-800 mile range. According to the table, the price is $240 per 100 lbs.
Calculating the Number of Units Next, we calculate how many 100 lbs units are in 2,000 lbs. We divide the total weight by 100:
100 lbs/unit 2000 lbs = 20 units
So, we have 20 units of 100 lbs.
Calculating the Base Shipping Cost Now, we calculate the base shipping cost by multiplying the number of units by the price per unit:
20 units × $200 /unit = $4000
The base shipping cost is $4000.
Calculating the Premium We are given that the premium for 2-day shipping is 40%. We calculate the premium amount by multiplying the base shipping cost by 40%:
$4000 × 0.40 = $1600
The premium amount is $1600.
Calculating the Total Shipping Cost Finally, we calculate the total shipping cost by adding the base shipping cost and the premium amount:
$4000 + $1600 = $5600
Therefore, the total cost to ship 2,000 lbs of goods from Denver to Kansas City using 2-day shipping is $5600.
Final Answer The cost to ship 2,000 lbs of goods from Denver to Kansas City (620 miles) using 2-day shipping is $5600 .
Examples
Shipping and logistics companies use similar calculations to determine shipping costs based on distance, weight, and shipping speed. For example, a company might need to ship products from a warehouse to a store and must decide between standard shipping and expedited shipping. Understanding how these costs are calculated helps businesses optimize their shipping strategies and pricing. This type of calculation is also useful for individuals who frequently ship items and want to understand the costs involved.
