Beverage Case
Beverage Case
Roles
President Jack Johnson
Driver Joe Stevens
Sales manager Marsha Ketchum
Accounting Jim Thomas
Jason Rodgers operation manager
The Company JBI
Last year revenue 12 Million $ about 20 customers between 100.000 $ to over 1 million $ undiscounted list price was 15,20$per case of 25 full cost Excluding customer service was 13,10$ per case
Case situation Saver Superstone one of Johnson Beverage largest customers want discount
ABC for JBI
Saver Superstore
Oscar's Oddlots
Midwellen Supermarket
Downtown retail
Total for JBI
Price per case
14,60$
14,90$
15,19$
15,15$
15$
Number of cases
80.000*0,84
=67.200$
80.000*0,84
=67.200$
8.000*0,84
=6.720$
30.000*0,84
=25.200$
800.000
Number of Orders
16*200
=3.200$
40*200
=8.000$
20*200
=4.000$
30*200
=6.000$
500
Number of Deliveries
110
400
200
230
4.480
Miles traveled per delivery
5*110*3,13
=1.721,5$
19*400*3,13
=23.788$
11*200*3,13
=6.886$
4*230*3,13
=2879,6$
10
Number of expedited deliveries
10*79,2
=792$
250*79,2
=19.800$
130* 79,2
=10.296$
90*79,2
=7128$
2500
Number of sales visits
12*250
=3000$
25*250
=6250$
18*250
=4500$
9*250
=2250$
360
Total Cost Per Company
75.913,5$
125.038$
31.902$
43.457,6$
Gross Margin
120.000$
144.000$
16.720$
61.500$
1.520.000$
Customer Profit
44.086,5$
18.962$
-15.182$
18.042,4$
320.000$
COST PER ACTIVITY
Area of activity price numbers cost per single activity
Product handling
672.000$
800.000
0,84$
Taking orders from customers
100.000$
500
200$
Delivering the product
140.000$
44.800
3,13$
Expediting deliveries
198.000$
2500
79,2$
Sales Visits to customers
90.000$
360
250$
Saver Superstone are there for a lot more profitable than first assumed; therefore it is possible to find a benefit for them in the contract to please them.
On the other hand we need to fire Midwell Supermarket or make a new contract to make them
Roles
President Jack Johnson
Driver Joe Stevens
Sales manager Marsha Ketchum
Accounting Jim Thomas
Jason Rodgers operation manager
The Company JBI
Last year revenue 12 Million $ about 20 customers between 100.000 $ to over 1 million $ undiscounted list price was 15,20$per case of 25 full cost Excluding customer service was 13,10$ per case
Case situation Saver Superstone one of Johnson Beverage largest customers want discount
ABC for JBI
Saver Superstore
Oscar's Oddlots
Midwellen Supermarket
Downtown retail
Total for JBI
Price per case
14,60$
14,90$
15,19$
15,15$
15$
Number of cases
80.000*0,84
=67.200$
80.000*0,84
=67.200$
8.000*0,84
=6.720$
30.000*0,84
=25.200$
800.000
Number of Orders
16*200
=3.200$
40*200
=8.000$
20*200
=4.000$
30*200
=6.000$
500
Number of Deliveries
110
400
200
230
4.480
Miles traveled per delivery
5*110*3,13
=1.721,5$
19*400*3,13
=23.788$
11*200*3,13
=6.886$
4*230*3,13
=2879,6$
10
Number of expedited deliveries
10*79,2
=792$
250*79,2
=19.800$
130* 79,2
=10.296$
90*79,2
=7128$
2500
Number of sales visits
12*250
=3000$
25*250
=6250$
18*250
=4500$
9*250
=2250$
360
Total Cost Per Company
75.913,5$
125.038$
31.902$
43.457,6$
Gross Margin
120.000$
144.000$
16.720$
61.500$
1.520.000$
Customer Profit
44.086,5$
18.962$
-15.182$
18.042,4$
320.000$
COST PER ACTIVITY
Area of activity price numbers cost per single activity
Product handling
672.000$
800.000
0,84$
Taking orders from customers
100.000$
500
200$
Delivering the product
140.000$
44.800
3,13$
Expediting deliveries
198.000$
2500
79,2$
Sales Visits to customers
90.000$
360
250$
Saver Superstone are there for a lot more profitable than first assumed; therefore it is possible to find a benefit for them in the contract to please them.
On the other hand we need to fire Midwell Supermarket or make a new contract to make them