utilization that Airborne achieve Therefore Long Haul Flight Trucking costs for

Utilization that airborne achieve therefore long haul

This preview shows page 19 - 22 out of 22 pages.

Image of page 19
ACTIVITY BASED COSTING Particulars Fedex Cost Airborne Cost (approx) Pick up Labour 1.09 12.11% 0.82 9.11% 20% savings due to pickup efficiency and 10% savings due to 60% contract Fuel 0.07 0.78% 0.07 0.78% Maintenance and depreciation 0.21 2.33% 0.21 2.33% Sub total 1.37 15.22% 1.10 12.22% Long Haul transport Flight and truck expenses 2.44 27.11% 1.01 11.22% Hub Labour 0.3 3.33% 0.3 3.33% assuming it to be same as less automation offsets less labour charges Hub Depreciation 0.25 2.78% 0.13 1.44% Hub cost is lower because of less automation, so is the depreciation (assume 50%) Sub total 2.99 33.22% 1.44 16.00% Delivery Labour 1.64 18.22% 1.39 15.42% 10% savings due to pickup efficiency and 10% savings due to 60% contract Fuel 0.1 1.11% 0.1 1.11% Maintenance and depreciation 0.31 3.44% 0.31 3.44% Sub total 2.05 22.78% 1.80 19.97% Advertising 0.22 2.44% 0.18 2.03% 60 million of annual expenditure sales and marketing and 900000 parcels/day Sales 0.21 2.33%
Image of page 20
Recommendations
Image of page 21
THANK YOU
Image of page 22

You've reached the end of your free preview.

Want to read all 22 pages?

  • Spring '13
  • facultymember
  • Marketing, Airborne Express, Express mail

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture