Made by:-
VISHNU
MAHESH
SUNAINA
SHRI HARSHA
ABHINAV
FACTS IN THE CASE
Melissa Dunhill-Controller
Tim Cunningham-Director of Operations
John Malone-General Manager
Regional Distributor of Office Supplies, (Had excellent reputation)
COMMERCI
AL FREIGHT
DELIVERY
DESKTOP
DELIVERY
Pricing: -Purchase cost + 15% markup(warehousing + distribution +
freight) + General and Selling Expenses
ADDITIONAL = +2% for Desktop Delivery.
FREIGH DESKTO
T P
DELIVER
Y
WAREHOUSE 20000 25$/CART 25$/CART
EXPENSE 0 ON ON
TOTAL NO. OF 80000 WAREHOUSE 0.9 * 0.1*24000
CARTONS PERSONAL 240000/75 0/5000
EXPENSE 000 = =48$
28.8$
WAREHOUSE 25$ TOTAL 53.8$ 73$
EXPENSE/CART
ON
ACTIVITY BASED COSTING
ACTIVITY 2- DELIVERY CHARGES
FREIGHT DESKTOP
DELIVERY
EXPENSE/CARTON 6$ 740$
MANUAL EDI
INTEREST 75 750
MANUAL EDI
EXPENSE/ORDER 47.5 5
MANUAL EDI
EXPENSE/ORDER 47.5 5
MANUAL EDI
EXPENSE/ORDER 47.5 5
800000-120000=$680000
NET PROFIT = (254313)+680000$
= $425687
ANALYSIS
BREAK EVEN ORDER POINT ANALYSIS
254313/(47.5-5) =5984 ORDERS
NO. OF MANUAL ORDERS =10016
NO. OF EDI ORDERS =13984