During the current pandemic and recovery season, it is observed that online shopping has become a trend,
Question:
During the current pandemic and recovery season, it is observed that online shopping has become a trend, and many people are buying what they want via online shopping. This situation has opened an opportunity to increase business volumes on delivery services. It has become a possibility to sub-contract delivery services from Australian Post. The main task is to provide a range of reliable, timely and customized regular courier services in Melbourne CBD, including the wider metro areas. To conduct courier services, it is required to have its delivery trucks or hire owner drivers to do the job for an agreed price. Delivery service is highly diverse due to differences in the distance (between pickup and delivery), the timeframe needed to complete delivery and the quantity of the item. The average price ranges from $15 to $18 per delivery item (or parcel). As the business Mr. Bontoft is just starting, it has decided to classify delivery by area postcodes so that an average price of $15 is uniformly paid to each owner-driver. The budgeted average fee to be collected from the Australian Post for each delivery item is $21.50. It is expected that the average delivery of items could reach about 150 parcels per day from Monday to Friday. No deliveries are made during the weekends. Australian post does not pay for parking, tolls, ferries, or fines incurred by subcontractors. Similarly, Mr Bontoft is also passing these expenses to owner drivers and the average price paid is meant to cover all expenses incurred by owner drivers. To start the business of delivery services, it requires renting or own a warehouse, electronic registering facilities, gadgets that should be used by owner drivers, store employees to facilitate the activity, etc. Loading and unloading is part of the owner driver's responsibility, and the business does not incur costs. Store and management costs are expected to reach about $4,487.50 per week. The delivery business is planned to operate every week for the entire year of 2022.
1. compute the breakeven volume for the year 2022 by showing all computations. 2. Expand your analysis to cover three years (2022 to 2024).
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr