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Re: Whizzo Chocolate Company in Chicago, IL, makes a wide variety of excep [#permalink]
Sajjad1994 wrote:
Notmycoffee wrote:
Can someone pl explain how to solve qs like Q2?
Why is B the less expensive choice for the first row in q2?
I couldn't understand the logic.

Thanks!­­

­OE

Suppose you have a mixed order and it is all going to be sent via refrigerated shipping. That cost $80 + $15*(# of pound). Suppose some items, not requiring refrigeration, are removed from that shipment, and a non-refrigerated shipment is created. The additional cost is the $50 base cost of a non-refrigerated shipment. The savings per pound is the difference in the per pound rates: $15/lb – $10/lb = $5/lb. When will this saving exceed the additional $50 cost? When the total weight of the non-refrigerated shipment exceeds 10 lbs.

The first order has five 12-piece assortments not requiring refrigerated shipping: 5 x 1.5 = 7.5 lbs of goods not requiring refrigerated shipping. That is not enough to justify a separate nonrefrigerated order.

­I got it now.
Thank you!
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Re: Whizzo Chocolate Company in Chicago, IL, makes a wide variety of excep [#permalink]
1. If a person in Pennsylvania has a total of $500 to spend on a Whizzo order, which of the following orders could he afford, including the cost of shipping?
  • five 12-piece assortments, all requiring refrigerated shipping
    • Price: 1.5 * 5 = 75
    • Shipping fee: 80 + 1.5 * 5 * 15 = 192.5
    • => Total less than $500
  • two large chocolate-covered fruit baskets
    • Shipping fee: 80 + 15 * 30 * 2 = 980 > 500
  • the all-chocolate chessboard with white & dark chocolate chessmen
    • Shipping fee: 80 + 15 * 25 = 455
    • Price: 155
    • ==> Total more than $500
2. For each of the following “mixed orders”, each containing twenty items total, which shipping option will be less expensive?

Option A) only items requiring refrigerated shipping sent via refrigerated shipping , and all other items sent without refrigeration
Option B) all items, regardless of type, sent via refrigerated shipping
  • ­fifteen 12-piece assortments requiring refrigerated shipping and five 12-piece assortments not requiring refrigerated shipping
    • Option A can reduce some cost for some pounds not requiring non-refrigerated shipping but incur the fixed cost for Non-Refrigatered shipping ($50)
    • whether to choose B is instead of A depends on whether the additional fee for refrigerating those which does not require refrigated shipping is less than $50 
    • Except the fixed cost, the difference between the 2 Refrigerated and Non-Refrigerated shipping service is $5/per pound
    • 5 (12 piece assortments) * 1.5 (lbs) * 5 ($ per pound) = 37.5 < 50
    • Option B is better
  • ten 12-piece assortments requiring refrigerated shipping and ten 12-pieceassortments not requiring refrigerated shipping
    • Similar reasoning
    • 10 (12 piece assortments) * 1.5 (lbs) * 5 ($ per pound) = 75 > 50
    • Option A is better
  • five 12-piece assortments requiring refrigerated shipping and fifteen 12-piece assortments not requiring refrigerated shipping
    • If the number of those not requiring refrigerated shipping increase, the the additional fee for refrigerating those which does not require refrigated shipping will also increase 
    • The additional fee for this case will be higher than that of the 2nd case ($75) and therefore higher than $50
    • Option A is better



 
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Re: Whizzo Chocolate Company in Chicago, IL, makes a wide variety of excep [#permalink]
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