A shipping company uses a two-part pricing structure for pallet shipments. The company charges a flat handling fee of $525...

1. TRANSLATE the problem information

• Given information:
  • Flat handling fee: \(\$525\) per pallet
  • Variable cost: \(\$36\) per box
  • Number of boxes: 37
• Find: Total shipping cost

2. INFER the cost structure approach

• This is a linear cost function with two parts:
  • Fixed cost (the same regardless of boxes): \(\$525\)
  • Variable cost (depends on number of boxes): \(\$36\) per box
• Total cost = Fixed cost + Variable cost

3. Calculate the variable cost

• Variable cost = \(\$36 \times 37\) boxes = \(\$1,332\)

4. SIMPLIFY to find total cost

• Total cost = \(\$525 + \$1,332 = \$1,857\)

Answer: 1857

Why Students Usually Falter on This Problem

Most Common Error Path:

Weak INFER skill: Students calculate only the variable portion and forget to include the flat handling fee.

They correctly compute \(36 \times 37 = 1,332\) but submit this as their final answer, missing that this is only part of the total cost structure. The flat \(\$525\) fee applies regardless of the number of boxes and must be added.

This leads them to answer 1332 instead of the correct 1857.

Second Most Common Error:

Poor SIMPLIFY execution: Students set up the problem correctly but make arithmetic errors.

Common computational mistakes include:

• Incorrectly calculating \(36 \times 37\) (getting 1,322 instead of 1,332)
• Adding incorrectly when combining \(525 + 1,332\)

This causes them to arrive at incorrect final answers close to but not equal to 1,857.

The Bottom Line:

This problem tests whether students can identify and properly combine different types of costs in a multi-part pricing structure. Success requires both recognizing the two-component cost model and executing the arithmetic accurately.