case study HDT truck company

Transit time is an important element as well. Any reduction in transit time therefore reduces the overall cost of the delivered goods. Transit times can be improved by

Answer 1- The first question which shows the two new options how impact transfer and customer might freight cost and the answer for this question is given in first alternative and second alternative which is elaborated above.

What information to you need to find the 3 year forward rate starting 2 years from now?

- Provided a/c sec f/400 armored vehicle trans msns; 2.4K MATV's delivered--cut shipping fee, saved $290M

Q3. Using the current exchange rate, what is the cost (in US dollars) to ship a TEU container from Dong Hai Supply in Chengdu, China to IDC’s Alliance Fort Worth Distribution

Before allocating the fees, Komandor was buying 500,000 units at $0.45$/unit  duty fees = 500,000 x $0.45 x 0.09 = $20,250

Add also another $38.33 per month as average monthly interest payment for your truck loan.

AAA Transportation is an interstate company that focuses on transporting wholesale products in refrigerated trailers around Midwest this company is located in Waukegan,WI. On the other hand, AAA Transportation has new owners that are planning to make some positive changes that can potentially raise the company's growth becoming more successful. The new owners want to add a delivery of nonperishable products, such as canned foods, to their delivery routes, allowing AAA to expand the area they cover and to provide expanded service to their existing customers. Taking in consideration that many of the routes do not require a full load, there would

a. How much would the payment be if rate of interest is 5% and you only financed the truck for 48 months?

For FRD line items 59a and 60 – not sure if fully loaded has been defined as 60K lbs., but anticipate these two line items will be addressed during the TD.

a) As per exhibit -4, there was no cost allocation between Treasury and Metro divisions, hence transfer price will be:

After the calculations you end up coming out with a rate of 14.87%. The third and final part of question three asks what rate you will need if the interest is compounded semiannually. All you have to do is double the amount of terms and you will come out with a lower number of 7.177%. Since the interest is compounded semiannually that means that you will need to times that number by two and you come out with your final number of 14.35%.

Freight cost was also a problem when the shipping distance expended. Both stoves and ovens were bulky and weighed well over 300 pounds each. Thus,they were very expensive to ship.Bridgewater owned a fleet of trucks which had been expanded from 5 to 10 since the addition of wood ovens to the business. Even though the fleet represented about a $2 million investment. Shipping full – load orders in compnay owned trucks was not uneconomic. But more than hald of all shipments went out in partial loads using common carriers and contract haulers. Considering traffic management.dispathing fleet costs. freignt bills. packing cost and rental charges for public warehouse space. Total shipping costs were running about 17 % of sales in 1985.

Although for the sake of convenience the defined terms “Seller” and “Buyer” are used here, consider changing the defined terms to the names of the parties (or a shortened form of their names) so as to avoid any potential confusion regarding the parties’ intention that this agreement does not create a binding contract for the sale of the business.

Compute the amount of gross profit to be recognized from the installment sale in 2006, 2007, 2008, 2009, and 2010 using point of delivery revenue recognition. Ignore interest charges.