Origin 303: Destination 489: MC 81.00 RBNO
00775E

Rate
Class          
L5C          
M5C         M1M  
     M2M
     M5M  
    M10M  
     M20M       
M30M     M40M

500                
  233.58       
193.89       147.14  
119.10    
84.05      
65.37            
40.32         
32.25         
28.24

400                 
188.24         
156.25      
118.58     95.98     
67.73      
52.69           
32.55           
26.03      
  22.79

300                  
144.11        
119.63      
90.78       
73.48     
51.86       
40.34          
24.94         
19.95         
17.45

250                  
126.30        
104.84       
79.56      
64.40      
45.45      
35.34          
21.86        
  17.48        
15.31

200                  
98.37          
81.66  
       61.97       
50.16     
35.40       
27.53        
17.00          
13.60        
11.91

175                  
88.65      
     73.58        
55.84      
  45.20     
31.90       24.81
       15.30         
12.24         
10.72

150                   
76.11       
  63.18         
47.94        
38.81     
27.38      
21.30       
13.20           
10.56        
9.24

125                  
64.76       
  53.76         
40.80        
33.03     
  23.31      
18.12        
11.25          
9.00          
7.88

110                  
56.27         
46.71         
35.43          
28.69     
20.25     
15.75      
    9.88              
7.90         
6.92

100                 
56.62           
43.68         
33.15        
26.83       
18.94     
14.73           
9.22   
        7.38          
6.46

92                   
49.79           
41.33         
31.37        
25.39       
17.92      
13.94          
8.91            
7.12          
6.24      

85                   
46.15            
38.31   
      29.07        
23.53       
16.61     
12.92          
8.58             
6.86          
6.01

77                   
42.91           
35.62          
27.03         
21.88      
15.44      
12.01         
8.34             
6.67          
5.84

70              
     40.48             
33.59        
25.50         
20.64       
14.57      
11.33         
8.10           
6.48            
5.67

65                   
38.46           
31.92          
24.22         
19.61       
13.84       
10.76        
8.02           
6.41           
5.61

60                  
36.84           
30.58           
23.21        
18.78         
13.26      
10.31         
7.94           
6.35            
5.56

55                  
34.81            
28.90           
21.93        
17.75       
12.53     
  9.74            
7.85            
6.28            
5.50

50                  
32.79            
27.22           
20.66        
16.71       
11.80      
9.18           
7.77            
6.22             
5.44

WIEGHT        
Under
              500-         
1000-          
2000-      
5000       
10,000-     
20,000-     
30,000-        over

LIMITS (lb)     500
            1000              
2000          
5000       
10,000     
20,000      
30,000      
40,000        
40,000

Stanley Harris, traffic manager of This n’ That Manufacturers,
is considering the negotiations of a freight-all-kind (FAK) rate
for shipment between Atlanta and Lansing. The company ships 200
(class 65) shipments of 5,000 lb., 40 (class 400) shipments of
1,200 lb., and 30 (class 100) shipments of 10,000 lb., and receives
a 45% discount on published rates.

a) Refer to Table 8.8 to determine the current freight bill for
the above shipments.

Note: Take the discount from the published rate and round up for
the applicable hundredweight rate.

b)Should Mr. Harris accept a FAK rate of $10 per
hundredweight?

c) What factors aside from price should Mr. Harris consider with
a FAK rate?