Landed Cost of Shrimp Calculation
What is the total cost of a pound of shrimp based on the given data?
Options: (A) $13.72 (B) $20.42 (C) $16.56 (D) $17.00
Answer:
The landed cost of a pound of shrimp is $17.00
To calculate the landed cost of a pound of shrimp, we need to consider the total expenses incurred by John Pierre in purchasing and transporting the shrimp from Cajun Seafood Market to Lubbock, Texas. Let's break down the calculations:
Gas Cost Calculation:
John Pierre's round trip driving distance between Lubbock, Texas and New Orleans, Louisiana is 820 miles. His Smart Car averages 40 miles per gallon, and gas is priced at $4.00 per gallon. Therefore, Total gas used = 820 miles x 2 (round trip) / 40 mpg = 41 gallons Total gas cost = 41 gallons x $4.00 = $164.00
Ice and Shrimp Cost Calculation:
John always packed $11 worth of ice and tried to fit 25 pounds of shrimp in the cooler. The shrimp cost $10 per pound. Therefore, Ice cost = $11.00 Shrimp cost = 25 pounds x $10.00 = $250.00
Total Cost Calculation:
Adding up gas cost, ice cost, and shrimp cost, Total cost = Gas cost + Ice cost + Shrimp cost Total cost = $164.00 + $11.00 + $250.00 = $425.00
Landed Cost per Pound Calculation:
To find the landed cost of a pound of shrimp, Landed cost per pound = Total cost / Number of pounds of shrimp Landed cost per pound = $425.00 / 25 pounds = $17.00
Therefore, the landed cost of a pound of shrimp based on the given data is $17.00, which makes option (D) the correct answer.