Final Part

Table 7. Price Points Last Year
	Price (USD)
Picking/min	1.3
Storage/sq. ft./month	1.5
Shipment/pallet	9.23

Per her instructions, pricing levels must ensure at 99% confidence that the overall company profit margin after taxes is within the U.S. cold storage industry average of 5 to 6%. U.S. corporate income tax is 21%. Indiana state corporate income tax is 5.5%. To keep the best customers, it is standard practice in the industry to offer.

a 15% discount. Handling is the most price-sensitive part of the business is.

What hourly staffing is required for the warehouse?

At this staffing level, what are the packing and storage costs?

At these costs, what prices do you recommend for packing and storage?

By revenue stream, its common practice in the U.S. cold storage industry to offer discounts. To which customer(s) would you offer discountshow much, and why?

At these pricing and discount levels, what are Magnas expected revenue, operating costs, and net profit margin?