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Essay

Dakota Office Products Study Case

Essay specific features

 

Issue:

Business

 

Written by:

Edward Q

 

Date added:

April 28, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 836

 

Was viewed:

6254 times

 

Rating of current essay:

 
Essay content:

Calculate the activity cost-driver rate for each DOP activity in 2000. Activity cost-driver rates: Activity One: process cartons in and out of the facility Rate=(90% of Warehouse Personnel Expense + Cost o Items Purchased)/cartons processed Rate=(90%*2,400,000+35,000,000)/80,000=464.5 $/per carton Activity Two: the new desktop delivery service Rate=(10% of Warehouse Personnel Expense + Delivery Truck Expenses)/desktop deliveries Rate=(10%*2,400,000+200,000)/2000=220 $/per carton Activity Three: order handling Rate=( Warehouse Expenses + Freight)/ number of orders Rate=(2,000,000+450,000)/(16,000+8,000)=102...
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So Customer A spend $1224.96 and Customer B spend $102,08 which is $8983.04 more money spent on Customer B. 5. What are the limitations, if any, to estimates of the profitability of the two customers? - Lack of information about distance taken for “desktop” delivery, so we can’t compute Delivery per Labor Hour because each time there is different distance form the warehouse which makes different cost per delivery...
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General issues of this essay:
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