Math in the Workplace - Measurements
BOISE CASCADE CORPORATION
Lumber Sales
Lumber Sales Representative
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Job Description: Sales and marketing of northwest lumber. Cultivate customer service relationships with customers and mills. Prefers degree in a related field with 3 - 25 years experience in lumber. Must have highly effective verbal communication, organizational, interpersonal and sales presentation skills. |
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Problem:
A customer has ordered ponderosa pine board items for a lumberyard located in Chicago, Illinois. What is the cost of the individual boards in the order.
The order consists of 1" x 6" boards 8' long, 10' long, 12' long, 14' long and 16' long.
The cost of the product at the mill is $530 per thousand board feet. One board foot of lumber equals a 1" x 12" board 1 foot long.
Freight cost for shipping a carload of lumber to Chicago from the mill at Kettle Falls, Washington is $4,420.
The amount of lumber that ships on a carload is 98,000 total board feet of lumber.
 BOISE CASCADE CORPORATION
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Solution:
1. Figure the cost for the material in board footage delivered to the yard in Chicago.
(cost at the mill per thousand board feet) x (total amount of material in thousands)
$530 x 98 = $51,940 (cost for material)
2. Add the freight total to the cost of material to get the total cost.
$51,940 + $4,420 = $56,360 (total cost with freight)
3. Break down the total cost into the cost-per-piece for the 5 lengths of 1" x 6" boards.
total delivered cost
total board footage |
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cost for 1 board foot, the equivalent of one 1" x 12" linear foot |
$56,360
98,000 |
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$.575 (per 1 board foot, 12" board) |
4. Next, figure the cost per linear foot for a 1" x 6" board
$.575 [(1" x 6") 
(1" x 12")] = $0.2875 (per linear foot, 6" board)
5. Take that cost and multiply times the length of each board to figure your costs per piece of lumber
| $.2875 x 8' |
= $2.30 per piece of 1" x 6", 8 foot long board |
| $.2875 x 10' |
= $2.88 per piece of 1" x 6", 10 foot long board |
| $.2875 x 12' |
= $3.45 per piece of 1" x 6", 12 foot long board |
| $.2875 x 14' |
= $4.03 per piece of 1" x 6", 14 foot long board |
| $.2875 x 16' |
= $4.60 per piece of 1" x 6", 16 foot long board |