Caiman Distribution Partners is the Brazilian distribution company of a US consumer products company.Inflation in Brazil has
Question:
Caiman Distribution Partners is the Brazilian distribution company of a US consumer products company. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to break into some of the country's rural regions. The company expects to distribute 450,000 boxes of products in Brazil next month. The controller has classified operating costs (excluding distributed product costs) as follows:
Although overhead costs were related to revenue across the company, the experience in Brazil suggested to managers that they should incorporate information from a published Brazilian price index in the distribution sector to forecast overhead costs more likely than not. Capture the economics of the business. . |
Following instructions from the corporate offices, the controller's office in Brazil compiled the following information for last year's monthly operations: |
Mes | Cases | price index | Operating costs | ||||||
1 | 351,000 | 118 | ps | 5,759,139 | |||||
2 | 368,000 | 120 | 5,866,638 | ||||||
3 | 364.000 | 121 | 5,909,905 | ||||||
4 | 386,000 | 125 | 5,987,617 | ||||||
5 | 380.000 | 127 | 5,999,135 | ||||||
6 | 401,000 | 128 | 6,103,364 | ||||||
7 | 373,000 | 131 | 5,978,495 | ||||||
8 | 418,000 | 136 | 6,193,868 | ||||||
9 | 404,000 | 136 | 6.186.130 | ||||||
10 | 427,000 | 135 | 6,246,625 | ||||||
11 | 423,000 | 139 | 6,268,799 | ||||||
12 | 438,000 | 142 | 6,422,255 | ||||||
These data are considered representative of past and future operations in Brazil.
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Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher