# ProHaul specializes in trans-American shipments for businesses through the delivery of containers. For every container the company loads on its trucks, ProHaul estimates the haul costs \$1,000. In addition, containers are weighed and for each pound, there are hauling fees of \$0.15. ProHaul plans to charge \$0.49 per pound to his customers.a. How many pounds would a container have to hold in order for the company to Break Even?b. What would the total revenue be for this?c. The company finds out that to maintain the integrity of its containers, each container could only hold an average of 8,000 pounds. What would the company have to charge customers to make \$5,000 in profit on each container?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
Question

ProHaul specializes in trans-American shipments for businesses through the delivery of containers. For every container the company loads on its trucks, ProHaul estimates the haul costs \$1,000. In addition, containers are weighed and for each pound, there are hauling fees of \$0.15. ProHaul plans to charge \$0.49 per pound to his customers.

a. How many pounds would a container have to hold in order for the company to Break Even?

b. What would the total revenue be for this?

c. The company finds out that to maintain the integrity of its containers, each container could only hold an average of 8,000 pounds. What would the company have to charge customers to make \$5,000 in profit on each container?

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