Table 1. Basic Information About Herald Products Position in product line RX-10 Entry-level RX-50 Top end...
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Table 1. Basic Information About Herald Products Position in product line RX-10 Entry-level RX-50 Top end Average selling price $ 18,000 $150,000 Variable manufacturing costs/unit $ 9,000 $ 63,000 Variable unit installation cost $ 900 $ 1,400 Sales commission rate 5% 5% Note: All monetary values are expressed in U.S. dollars. Table 2. Comparative ABC Warranty Service Costs per Average Service Call ABC Driver Count Product Fully Loaded ABC Rate Per Productive Hour* RX-10 Profiles RX-50 Service labor type/class Remote (call center) level 1 $30 0.4 hours 0.7 hours Remote (phone) level 2 $85 0.3 hours 0.8 hours Field technician $130 3.9 hours 6.1 hours Parts $300 $500 Historical service call rate during Warranty 1% 3% * Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. Table 3: ABC Sales Profile Data Average per Successful Sales Event Service labor Lead salesperson Sales support staff Fully Loaded ABC Rate Per RX-10 ABC Driver Count Product Profiles RX-50 $125 $73 8.0 hours 5.0 hours 24.0 hours 17.0 hours *Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. On an annual basis, they are paid hours less holidays, vacation, sick time, training, and administrative compliance hours. For sales, the time consumed pursuing "dead end" leads is included in the successful event averages Table 1. Basic Information About Herald Products Position in product line RX-10 Entry-level RX-50 Top end Average selling price $ 18,000 $150,000 Variable manufacturing costs/unit $ 9,000 $ 63,000 Variable unit installation cost $ 900 $ 1,400 Sales commission rate 5% 5% Note: All monetary values are expressed in U.S. dollars. Table 2. Comparative ABC Warranty Service Costs per Average Service Call ABC Driver Count Product Fully Loaded ABC Rate Per Productive Hour* RX-10 Profiles RX-50 Service labor type/class Remote (call center) level 1 $30 0.4 hours 0.7 hours Remote (phone) level 2 $85 0.3 hours 0.8 hours Field technician $130 3.9 hours 6.1 hours Parts $300 $500 Historical service call rate during Warranty 1% 3% * Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. Table 3: ABC Sales Profile Data Average per Successful Sales Event Service labor Lead salesperson Sales support staff Fully Loaded ABC Rate Per RX-10 ABC Driver Count Product Profiles RX-50 $125 $73 8.0 hours 5.0 hours 24.0 hours 17.0 hours *Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. On an annual basis, they are paid hours less holidays, vacation, sick time, training, and administrative compliance hours. For sales, the time consumed pursuing "dead end" leads is included in the successful event averages
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