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Minimizing Shipping Costs

Question 74

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Minimizing Shipping Costs. Towns A, B, C, and D are located as shown in the figure. Two highways link town A to town D. Route 1 runs from town A to town D via town B, and Route 2 runs from town A to town D via town C. Suppose a fleet of 100 automobiles are to be shipped from an assembly plant in town A to town D. They may be shipped either by freight train along Route 1 at a cost of 20¢/mile/automobile or by truck along Route 2 at a cost of 18¢/mile/automobile.
Minimizing Shipping Costs. Towns A, B, C, and D are located as shown in the figure. Two highways link town A to town D. Route 1 runs from town A to town D via town B, and Route 2 runs from town A to town D via town C. Suppose a fleet of 100 automobiles are to be shipped from an assembly plant in town A to town D. They may be shipped either by freight train along Route 1 at a cost of 20¢/mile/automobile or by truck along Route 2 at a cost of 18¢/mile/automobile. ​   ​ Which means of transportation minimizes the shipping cost? ​ __________ ​ What are the net savings? ​ $__________
Which means of transportation minimizes the shipping cost?

__________

What are the net savings?

$__________

Correct Answer:

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