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Management

Microtech Incorporated has decided to package its cell phone in a? smaller, recyclable package.? Additionally, the company will discontinue the practice of shipping each phone with a? 250-page user manual and instead will make the manual available online. These changes will result in a? lighter, but more difficult package for shippers to handle. The weight of each packaged phone has dropped from 2 pounds to 0.8 pounds as a result of these changes and the freight classification has worsened from 65 to 92.5. Use the table below to calculate the difference in? Microtech’s monthly shipping charges if the company ships 6,250 phones per month.

Matrix of Weight Breaks and Freight Class? ($/cwt)

Class

?<500

?(lbs)

500

?(lbs)

1,000

?(lbs)

2,000

?(lbs)

5,000

?(lbs)

10,000

?(lbs)

=20,000

?(lbs)

50

34.3

28.32

24.25

23.04

17.58

15.74

10.47

55

36.94

30.5

26.12

24.82

18.93

17.41

11.58

60

39.59

32.69

27.99

26.6

20.29

19.08

12.69

65

41.94

34.64

29.66

28.18

21.49

20.27

13.48

70

44.64

36.86

31.56

29.99

22.88

21.94

14.59

77.5

48.1

39.72

34.01

32.32

24.65

23.85

15.86

85

51.9

42.86

36.7

34.87

26.6

26.24

17.45

92.5

55.89

46.15

39.52

37.56

28.64

28.38

18.87

100

60.27

49.77

42.61

40.5

30.89

30.77

20.46

Before the changes in? packaging, shipping costs are $ ___ per month. ?(Enter your response rounded to two decimal? places.)

After the changes in? packaging, shipping costs are ?$ ____per month. ?(Enter your response rounded to two decimal? places.)

Thus, the new packaging will _____ shipping costs by $____ per month. ?(Enter your response rounded to two decimal? places.)

For the third questions first part you would choose from lower or rasied.

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