Upload your Excel, Word and/or Powerpoint document for the Hardee B case (pasted below – DO NOT USE the case 4-2 on page 125 of the 9th edition of the book!) here. You can use your book for instruction, examples, etc., please just use the case below for the assignment work.
See the Appendices in Chapter 4. Appendix 4A discusses general cost concepts, which are valuable to know for any business major. Appendix 4B discusses the costs associated with Less-than-Truckload (LTL) and Truck-load (TL) freight. This is what this assignment will focus on.
Excel should be used for the quantitative portions of the assignment. The entire assignment can be submitted in Excel if you wish.
Please show all of your calculations (via formulas in Excel is fine).
Note that the tractor and trailer are available only 20 hours per day (hint: this affects hourly depreciation!). Also note, that when there is a $/mile payment for driving labor, and there is a team of drivers, they split the per mile wage. “Fully Loaded” (in reference to wages) means the full wage for that employee (including benefits, vacation, PTO, etc.) – this is not related to whether the trailer has a load in it or not.
Be sure to show sub-totals for the four categories asked for in the question #1: pick up, sort, line-haul and delivery; then calculate the overall total.
Don’t forget the depreciation and interest!
In #3, what are the revised costs (yes, you need to calculate them! that is why using Excel is much easier!)? Does two drivers affect the overall delivery time? If so, what is the specific change (in hours) of delivery time?
This assignment can be done individually or in your team – your choice (TEAM is preferred). If done in a Team, only one team member needs to submit.
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Part of this assignment requires you to calculate the interest cost for the trailer and the tractor.
Here is an Excel file with the principal/interest calculations.
Happy Learning!
Carol
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