E13-39 - Distribution Customer Service Total Fixed Costs...

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Quality Craft Rentals Life Cycle Costing Example E13-39 Over Life Cycle Sales Volume, Annual 6,400 * 10 years 10 64,000 Sales Price ??? Sales Revenue Original Data Variable: Design $2.50 Operating 0.50 Marketing 0.50 Distribution Customer Service Variable Cost /Unit $3.50 Annual Fixed: Design $2,300 Operating 36,320 Marketing 6,000
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Unformatted text preview: Distribution Customer Service Total Fixed Costs $44,620 $446,200 Add: Cost for Fleet 21,000 Total Fixed $467,200 Divided by # canoe rentals Fixed Cost / Canoe $7.30 Add: Variable Cost/Canoe $3.50 Total Cost $10.80 Selling Price X Less: Total Cost $10.80 Profit .20X X = $13.50...
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