5. Amanufacturer has been shipping his product (moderately heavy machines), mounted only on skids without complete crating. To avoid erating he must ship in freight cars which contain only his machines. To do this he must pay freight on a car capacity load of 42 tons regardless of whether or not the car is'completely full. In the past he actually has shipped only 30 tons in each car. The car lond freight Fate is P4.10 per hundred pounds. If the machines are crated so that ey can be shipped in mixed car lots, along with other merchandise, can be shipped at a rate of P4.20 per hundred pounds with the freight bill computed only on the actual weight shipped. The cost of Which procedure should be followed? (1 ton = 2,200 lbs.) weight from 1,200 to 1,220 pounds per machine. crating would be P25.00 per machine and would increase the shipping Ans. Shipping without crating is cheaper by P404.80 Ahich procedure should be followed? (1 ton== 2,200 lbs.)

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
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Ans. Shipping without crating is cheaper by P404.80
5. Amanufacturer has been shipping his product (moderately heavy
machines), mounted only on skids without complete crating. To avoid
crating he must ship in freight cars which contain only his machines.
To do this he must pay freight on a car capacity load of 42 tons
regardless of whether or not the car is'completely full. In the past
Which procedure should be followed? (1 ton = 2,200 lbs.)
crating would be P25.00 per machine and would increase the shipping
weight from 1,200 to 1,220 pounds per machine.
e actually has shipped only 30 tons in each car. The car load freight
rate is P4.10 per hundred pounds. If the machines are crated so that
ey can be shipped in mixed car lots, along with other merchandise,
hey can be shipped at a rate of P4.20 per hundred pounds with the
Treight bill computed only on the actual weight shipped. The cost of
crating would be P25.00 per machine and would increase the shipping
Transcribed Image Text:Ans. Shipping without crating is cheaper by P404.80 5. Amanufacturer has been shipping his product (moderately heavy machines), mounted only on skids without complete crating. To avoid crating he must ship in freight cars which contain only his machines. To do this he must pay freight on a car capacity load of 42 tons regardless of whether or not the car is'completely full. In the past Which procedure should be followed? (1 ton = 2,200 lbs.) crating would be P25.00 per machine and would increase the shipping weight from 1,200 to 1,220 pounds per machine. e actually has shipped only 30 tons in each car. The car load freight rate is P4.10 per hundred pounds. If the machines are crated so that ey can be shipped in mixed car lots, along with other merchandise, hey can be shipped at a rate of P4.20 per hundred pounds with the Treight bill computed only on the actual weight shipped. The cost of crating would be P25.00 per machine and would increase the shipping
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ISBN:
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OpenStax
Publisher:
OpenStax College