Question: Please use table 1 2 . 5 on p . 3 5 8 ( 3 8 6 ) of the Richards book for this exercise
Please use table on p of the Richards book for this exercise without any changes given in exercise
Assume that the cost of one pallet storage is $ per week, inbound intake handling is $ per pallet and
the cost of outbound handling dispatch is $ per pallet. All overhead is applied at a rate of to both
storage and handling. Assume the week consists of seven days, Monday through Sunday. In a closedbook
contract where charges are billed on a weekly basis and include profit applied to all costs, the PL uses
minimum daily average pallet storage requirement of pallets and minimum weekly inbound and outbound
handling requirements of pallets each to base the charges on if the actual daily average usage numbers are
below the minima. The charges on the bill are itemized as storage, inbound handling, and outbound handling.
What will the customer be billed for storage for that week if the parties use the average daily pallet method
scenario
What is the agreed contract charge price per storage of one pallet per week?
What will the customer be billed for inbound handling for that week?
What is the total charge for that week?
In an open book or costplus contract, a total profit may be the last item on the bill after the cost subtotal.
What will this profit line item be under these conditions for that week?
Answer question under the modified terms of exercise
Answer question under the modified terms of exercise
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