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Identify the individual cost components and the total cost of delivering the product from supplier to retailer. Identify each cost in terms of the incremental addition to the product cost (Hint: Express your answers in terms of cost per pound-not total cost). Present your findings in the table below using 4 significant digits. Yes, some of these may be very small numbers --- but why might that be important?
Identified Cost
Cost per Pound
Calculation
1. Original unit price
$0.3900
Given in the case.
2. Ocean Freight charge
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13. General and Administrative fees
Total Landed Cost (Sum of 1-13 above)
mark-up of 25%
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BEP- Break Event Point: It shows no Loss and no Profit The level of activity at which, total revenues equivalent total costs. A point at which there is no profit and no loss.
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 Variable costs are those
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