Question

QUESTION 1 Acme Logistics provides "less than truck load" (LTL) services throughout the U.S. They have several hubs where they use cross-docking to move goods from one trailer to another. Acme built its last hub 10 years ago, and it had 36 dock doors. The cost index at that time was 140, and the total cost was $6 million. Acme plans a new hub that will have 60 dock doors. The cost index now is 195, and Acme will use a capacity factor of 0.74. What is the estimated cost (in millions of dollars) of the new hub? (Enter your answer as a number in millions of dollars without the dollar $ sign.)

Answer 1

Solution: 12.1963 Working: 195 Св %3 $6, 000, 000 140 $8, 357, 143 X SA СА 3 Св SB 0.74 60 $8, 357, 143 36 $12,196,256 or 12.1963 million CA 8