please answer all parts of the question within 30 minutes with detailed explanation. Make sure calculation form part of the answer and are in details for better understanding. If calculations are not shown or are poorly done i will surely give negative ratings.

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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please answer all parts of the question within 30 minutes with detailed explanation. Make sure calculation form part of the answer and are in details for better understanding. If calculations are not shown or are poorly done i will surely give negative ratings.
1) Consider a warehouse with an area of 5,000
square meters, fully racked four pallets high, and
3,890 pallet spaces available. The component costs
in the warehouse are listed in the table below:
Cost
$ per annum
Rent
$150,000
Warehouse executive's wages
$344,680
Overtime salary
$46,500
Fire insurance
$8,500
Racking depreciation
$15,000
Maintenance
$20,000
Heat and light
$18,750
a. Calculate the total fixed cost, total variable cost on a
yearly basis.
b. Assume that the average pallet that is used for storage
is 3,200 pallets. Calculate the pallet space utilization of
the warehouse.
Transcribed Image Text:1) Consider a warehouse with an area of 5,000 square meters, fully racked four pallets high, and 3,890 pallet spaces available. The component costs in the warehouse are listed in the table below: Cost $ per annum Rent $150,000 Warehouse executive's wages $344,680 Overtime salary $46,500 Fire insurance $8,500 Racking depreciation $15,000 Maintenance $20,000 Heat and light $18,750 a. Calculate the total fixed cost, total variable cost on a yearly basis. b. Assume that the average pallet that is used for storage is 3,200 pallets. Calculate the pallet space utilization of the warehouse.
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