A firm works on the activity "delivery of packets to customers". The following information is given. Weight of all packets Total Number Volume Business year activity cost of all packets of all packets 2019 123,411 € 8,430 68,470 kg 4,000 m3 2020 135,800 € 9,000 70,000 kg 4,400 m The firm's managers are surprised, as the activity cost increased by 10%, while the number of packets increased by only 7%. a) What might, in this case, be the main cost driver for the increase in activity cost? Please give a reason for your answer.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
Topic Video
Question
A firm works on the activity "delivery of packets to customers". The following information is given.
Total
Number
Weight
of all packets
Volume
Business year
activity cost
of all packets
of all packets
2019
123,411 €
8,430
68,470 kg
4,000 m?
2020
135,800 €
9,000
70,000 kg
4,400 m3
The firm's managers are surprised, as the activity cost increased by 10%, while the number of
packets increased by only 7%.
a) What might, in this case, be the main cost driver for the increase in activity cost? Please give
a reason for your answer.
b) Based on your answer to question a, what is the corresponding activity-cost rate?
Transcribed Image Text:A firm works on the activity "delivery of packets to customers". The following information is given. Total Number Weight of all packets Volume Business year activity cost of all packets of all packets 2019 123,411 € 8,430 68,470 kg 4,000 m? 2020 135,800 € 9,000 70,000 kg 4,400 m3 The firm's managers are surprised, as the activity cost increased by 10%, while the number of packets increased by only 7%. a) What might, in this case, be the main cost driver for the increase in activity cost? Please give a reason for your answer. b) Based on your answer to question a, what is the corresponding activity-cost rate?
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Optimization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,