Let There Be Light Lamp Shade Company
1. How many style A shades can be loaded into an intermodal container?
The area of an intermodal container (8x8.5x40) is: 2,720 cubic feet. Each box of style A is 12 x 12x 12 inches, converted in feet is 1x1x1 feet. However, the top 6 inches (0.5 feet) has no use, so the calculation is= 8x8x40= 2,560. The intermodal container will hold 2,560 style A lamp shades (it would weigh less than 44,000 pounds)
2. How many style B shades can be loaded into an intermodal container?
Style B is shipped nested in packages of six with a dimension of 12x12x48 inches, converted to feet is 1x1x4 feet. The top 6 inches has no use, so the calculation is= 8x8x10= 640 packages. The intermodal container will
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5. What are the total costs of delivering the style B shades to the port of importation?
The total cost of delivering style B shades is $ 33,396.00; the explanation of how this number is calculated is shown in the following charts:
Style B Cost (unit) # lights # Package #Intermodal
Containers Total Cost
Shades $ 5.00 5,400.00 $ 27,000.00
Package $ 2.00 900.00 $ 1,800.00
To Oakland $ 1,000.00 2 $ 2,000.00
Cost $ 30,800.00
Insurance 2% $ 30,800.00 $ 616.00
To Overseas # of Packages # Package in 40 cubic feet # 40 cubic ft used Cost per ton Total Cost
Container 1 640 10 64 $22 $1,408
Container 2 260 10 26 $22 $572
Overseas Cost $1,980
Total Cost= $30,800.00 + $616.00 + $1,980.00= $33,396.00
*To Overseas: The weight of every 40 cubic feet is less than 2000 pounds but the ocean conference used a measurement ton that indicated that for bulky loads every 40 cubic feet would equal
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The cost of ocean freight rates is $2,970. Adding the figures together brings the total costs of delivering for style A shades to the port of importation to $31,366.80. Style B lamp shades cost $5 per lamp shade for a total cost of $27,000. The packaging of the style B lamp shade is $1,800 ($2 x 900). It will take two loads to the Port of Oakland for a total of $2,000. Insurance for style B lamp shade will cost $616 because the total cost thus far is $30,800 time 2% of the value of the shipment. The ocean freight rate cost is $1,960; for a total cost of delivering of $33,376. For style C lamp shades, the cost per shade for manufacturing is $6 for a total of $32,400 and the total packaging cost is $1,620. Again, two loads will be needed to deliver to the Port of Oakland for a total of $2,000. The insurance for style C lamps shades is $720 ($36,020 x .02). The ocean freight rate cost is $1,238. The total cost of deliver the style C shades to the port of importation is $37,978. Thus, style A lamp shades would be preferred because it the least expensive out of all three styles.
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