. A company has a central supply facility and a distribution center located 400miles away. The central supply product cost is $75, TL transportation rates fromcentral supply to the DC are $60 per unit, and handling costs at the DC are $4 perunit. Calculate the market boundary location and the landed cost at the marketboundary. LTL rates are $2 per unit per mile.

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter15: Retailing, Direct Marketing, And Wholesaling
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. A company has a central supply facility and a distribution center located 400
miles away. The central supply product cost is $75, TL transportation rates from
central supply to the DC are $60 per unit, and handling costs at the DC are $4 per
unit. Calculate the market boundary location and the landed cost at the market
boundary. LTL rates are $2 per unit per mile.

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