Question: A logistics company monitors its fuel, maintenance, and labor costs over five months. Month Deliveries Made Fuel Cost Cost per Delivery (Fuel) Maintenance Cost Cost
A logistics company monitors its fuel, maintenance, and labor costs over five months.
| Month | Deliveries Made | Fuel Cost | Cost per Delivery (Fuel) | Maintenance Cost | Cost per Delivery (Maintenance) | Labor Cost | Cost per Delivery (Labor) |
|---|---|---|---|---|---|---|---|
| 1 | 50 | $1,000 | $2,500 | $3,000 | |||
| 2 | 100 | $2,000 | $3,000 | $6,000 | |||
| 3 | 25 | $500 | $1,500 | $1,500 | |||
| 4 | 75 | $1,500 | $2,800 | $4,500 | |||
| 5 | 125 | $2,500 | $3,200 | $7,500 |
Required: a. Calculate the cost per delivery for each cost. b. Classify each cost as fixed, variable, or mixed. c. Explain how understanding these cost behaviors can enhance fleet management. d. Evaluate the impact of fuel, maintenance, and labor costs on overall logistics expenses. e. Propose cost-saving measures for each type of cost.
Step by Step Solution
There are 3 Steps involved in it
Solution Lets go through each part of the required solution step by step a Calculate the cost per delivery for each cost We need to calculate the Cost per Delivery Fuel Cost per Delivery Maintenance a... View full answer
Get step-by-step solutions from verified subject matter experts
Study Help