18

the stores and stocks them on the shelves. This distribution costs $43,000 per year. average 7 percent of sales. Bad debts expense amounts to 8 percent of sales. by Kaune delivery trucks at a cost of $27,000 per year. Required: 1. Calculate the total cost per case for each of the three customer classes. Round intermediate calculations and final answers to four decimal places. Use the rounded values for subsequent requirements. 2. Using the costs from Requirement 1, calculate the profit per case per customer class. Round intermediate computations to four decimal places and final answers to two decimal places. Does the cost analysis support the charging of different prices? 3. What if Kaune charged the average price per case to all customer classes? How would that affect the profit percentages