Acme Business Products currently ships office equipment via Wiley Trucks to its retail outlets. Management is evaluating
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Buggs Trucking is up for sales. Tentative budgeted distribution requirements for 2004 reflect the transportation of 750,000 ton-miles. Practical capacity reflects the potential to run 1,250,000 ton-miles. Budgeted distribution costs for Buggs Trucking are: Variable operating costs $6.50 per ton-mile, Fixed Costs $8,000,000. Each of the retail outlets is charged for cost of products delivered to it. What is the allocated cost per ton-miles in 2003 if costs are allocated according to budgeted usage?
a) $17.17
b) $14.50
c) $12.90
d) $10.00
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Managerial Accounting Decision Making and Performance Management
ISBN: 978-0273764489
4th edition
Authors: Ray Proctor
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