Question
Annual ICC Store REX Annual ICC Distribution Center (BODDC only) Activity Based Costing (All costs per unit except for shipping) TRADITIONAL BOPUS BODFS BODDC
Annual ICC Store REX Annual ICC Distribution Center (BODDC only) Activity Based Costing (All costs "per unit" except for shipping) TRADITIONAL BOPUS BODFS BODDC X X Annual Turnover Altams Rems Citems 34.8% 34.8% 34.8% 32.1% 32.1% 32.1% 1.61x 3.22x 9.73x X X Average shipment weight (lbs) 37.21 8.97 143 EXOTXAverage Unit Cost XAMINAREX EXAverage Unit Price $100.00 $25.00 $5.00 $141.70 $35.43 $7.09 Customer Service Online $0.24 $0.18 $0.12 x x XXX x X X Customer Service Retail Store $0.48 $0.36 $0.24 Operations DC $0.12 $0.10 $0.08 Operations DC to Ship Direct to Customers process 50.83 $0.42 $0.24 Operations Retail Stores 50.60 $0.30 50.10 X Packaging for LTL/Small Packaging shipments $1.12 $0.53 $0.32 Packaging for TL shipments 50.12 50.08 $0.06 K Return Rate for Items Fulfilled from DC 18% 12% 6% Return Rate for Items Fulfilled from Retail Store 11% 7% 3% Return Rate for Items Sold or Picked Up at Retail Store 5% 3% 1% X E EX Returns cost to process $1.18 50.97 $0.76 Sales Increase projected Additional Customer purchase when picking up an order 18.2% 29.3% 65.7% Sales increase projected due to new BODDC channel 5.0% 4.2% 0.5% Sales Increase projected due to new BODFS channel 4.7% 4.0% 0.5% MR Sales increase projected due to new BOPUS channel 7.0% 15.3% 25.0% Shipping DC to Store T [per pound 50.07 $0.19 $0.27 X Shipping LTL/Small package DC to Customer (maximum 225 miles) (per pound Shipping LTL/Small package Retail to Customer (maximum 25 miles) (per pound) System Support/Management for Online Ordering 50.32 50.92 $3.71 50.24 $0.63 $2.70 50.17 $0.17 $0.17 QUESTION #2: On a second page identify the cost of each activity and the total delivered cost PER UNIT for A, B, and C items for each proposed channel. "Our transportation rates offer some interesting opportunities that shape channels," continued Stephanie, "Truckload (TL) shipping is always a much lower cost per pound than LTL/Small Package delivery such as FedEx or UPS. It is the economic principle of packaging in larger lots and shipping to a single retail store location compared to many small packages shipped to many locations. After the analysis we will be able to better determine the leverage points.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started