How much Apple should charge a customer for shipping and handling for each computer? b. Find shipment cost for this order. c. Find the total cost per computer if Apple holds its inventory on an average 1.5 months at $0.75/year against every $1 of inventory?
1. Apple Computer Inc. bought $900 of materials from its vendor for a
the particular order of 6 computers. To deliver this particular order, UPS driver needs to stop in 3 different places to cover a total distance of 550 miles, the cost per stop is $0.58 and the cost per mile is $0.35 since it is using UPS service for delivery. Marginal cost per stop is $0.30, the fixed cost of handling a pallet of computers (pallet size = 6) is $12 and the variable cost of handling the same pallet is $6.60.
a. How much Apple should charge a customer for shipping and handling for each computer?
b. Find shipment cost for this order.
c. Find the total cost per computer if Apple holds its inventory on an average 1.5 months at $0.75/year against every $1 of inventory?
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