The finance director returned to his office and after searching all the data concluded that the difference in the profitability of the two products is mainly due to the cost of distribution. although the distribution of the two products is made by different distribution channels, the distribution cost of 2,130,000€ is allocated on the basis of the number of radios sold. A further study of the cost of distributing the products showed that: 120,000 cases of EP are sold through 15 wholesalers and 80,000 of the CAP in 40 cases. The cost of promoting the product is 8.000€ per wholesaler per liquor store. The cost of managing orders from each point of sale is 300€/ order. The trader informed the economic operator that on average each wholesaler makes 14 EC orders per year while each liquor store makes an average of 15 CAP orders. Transport amounts to 8€/ case Requested using ABC calculate the distribution cost of the EP and the CAP     PLEASE AS SOON AS POSSIBLE IN MINUTEES

Oh no! Our experts couldn't answer your question.

Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience.

Submit your question and receive a step-by-step explanation from our experts in as fast as 30 minutes.
You have no more questions left.
Message from our expert:
Hi and thanks for your question! Unfortunately we cannot answer this particular question due to its complexity. We've credited a question back to your account. Apologies for the inconvenience.
Your Question:
The finance director returned to his office and after searching all the data concluded that the difference in the profitability of the two products is mainly due to the cost of distribution. although the distribution of the two products is made by different distribution channels, the distribution cost of 2,130,000€ is allocated on the basis of the number of radios sold. A further study of the cost of distributing the products showed that:
120,000 cases of EP are sold through 15 wholesalers and 80,000 of the CAP in 40 cases. The cost of promoting the product is 8.000€ per wholesaler per liquor store. The cost of managing orders from each point of sale is 300€/ order. The trader informed the economic operator that on average each wholesaler makes 14 EC orders per year while each liquor store makes an average of 15 CAP orders. Transport amounts to 8€/ case Requested using ABC calculate the distribution cost of the EP and the CAP
 
 
PLEASE AS SOON AS POSSIBLE IN MINUTEES
Knowledge Booster
Inventory management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.