The info is still a bit on the confusing side, but I'll tell you what I can. The numbers are easier to pull out of the second post, but I'm having to jump back and forth between these long posts to get info out of the first post. In all that scrolling back and forth, I could very easily be missing something important.
Quote:
req 283,700/272,170x720=7509.60
That's OK.
Quote:
all pack
831,20/6259.60x1960=2,602.80
I have a different answer, but it's close so I'm assuming you rounded differently. You might have to play around with the rounding. Some of their answers are close, so you need to be within just a few dollars to know you're correct.
You are, however, being inconsisten. Your first answer of 7509.60 agrees with mine to the penny. Meaning the cost per requisition you rounded to $10.43 like I did. But the second one you didn't round the cost per pick pack at all. At least be consistent about it.
Quote:
cartons
8,973.50/64,300x461=1991.96
I have no idea where you're getting that from, but it might help if you stopped dropping zeros and moving decimals around. You're doing the correct thing, but the final answer isn't right, so I don't know what's happening with the math in between.
Quote:
dilivery
9.30x720=6,696
miles
.30(5.4x720)=1,166.40
That's all correct.
Quote:
now for the profit add costs
7,509.60+2602.80+1991.96=12104.36
less profit
6696+1166.40=7862.40
not sure if you do anything with data entry
according to this the profit is 7,862.40
the only profit I see is in the money they charge per delivery.. Help
I'm not following your line of thinking here. How is delivery charges profit? That's part of their costs! Look at the original info given: sales, product costs, service fee... I'm having to assume that "product costs" means the actual cost of the supplies they're selling. They used to consider service costs as a percent of sales, but are re-doing that as ABC costing. So your job is re-figuring their actual costs rather than using just a percent of sales. And delivery is just one of those costs. Profit is revenues less costs. How would delivery be reveues less costs? Profit isn't a particular "thing" - it's just what you're charging above and beyond your costs.
Although if you ask me, something is goofy in the problem anyway. I don't know either what you're supposed to do with the data entry. They haven't given any activity base for it. A logical activity base might be the number of requisitions, but it gives you all the other ones, so I don't know why they'd expect you to make an assumption for just that one cost. (If it's based on requisitions, why not consider it part of "requisition handling"?) But they do include data entry in their original list of service fee costs.
Plus the original data given doesn't work out. Notice that sales less all the costs don't equal the gross margin they give. So the original numbers aren't even correct. So there's something terribly screwy about the information presented. (Unless you are leaving something out.)
I can't come up with any of their answers. I'm getting around $4500 which is bigger than all of them. If I could add some of that data entry cost, maybe that would bring it down to that vicinity, but not enough info to do that.
