Fabulous food limited sells a large volume of baked beans which are manufactured in Melbourne. TMT, a transport company, has the contract to ship 6000 cartons each year from Melbourne to Sydney. Most of this goes to a single Sydney customer. Two types of truck are used for this traffic – one type having 30 m3 of usable space and the other having 60 m3 of space. Each carton takes up one twentieth (1/20) of a cubic metre of shipping space.At a recent rate negotiations meeting with TMT, Fabulous Foods was offered:$50 per cubic metre for a full 30m3 load;$40 per cubic metre for a full 60 m3 load;$60 per cubic metre for a less-than-truckloadThis compared with the current flat rate of $55 per cubic metre. Pat McDonald, the Logistics Manager at Fabulous Foods was unsure whether to accept the new rate or not. She collected the following additional information to make her decision:Fabulous Foods cost per carton - $40Inventory Carrying costs – 2.5% of product cost;Cost of manufacturing set-up for run of beans - $100Annual sales – 6,000 cartons;Daily production rate – 100 cartons Ms McDonald also discovered that there was sufficient storage space at the Melbourne terminal for 1200 cartons. Fabulous Foods was responsible for the costs of loading the shipment, the line-haul transport costs, but not the cost of unloading the shipment in Sydney. Loading costs were estimated at 10 cents per carton. Over the last couple of years Fabulous Foods had established the practice of making thirty shipments per year to Sydney using TMT.Should fabulous Foods accept the new rate structure? - did not match any documents.