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.
Costs of Different Customer Classes
Kaune Food Products Company manufactures canned mixed nuts with an average
| Customer | Price per Case |
Cases Sold |
|||||
|---|---|---|---|---|---|---|---|
| Supermarkets | $63 | 80,000 | |||||
| Small grocers | 94 | 44,000 | |||||
| Convenience stores | 89 | 30,000 |
The supermarkets require special labeling on each can costing $0.02 per can. They order through electronic data interchange (EDI), which costs Kaune about $58,000 annually in operating expenses and
The small grocers order in smaller lots that require special picking and packing in the factory; the special handling adds $20 to the cost of each case sold. Sales commissions to the independent jobbers who sell Kaune products to the grocers average 6 percent of sales.
Convenience stores also require special handling that costs $26 per case. In addition, Kaune is required to co-pay advertising costs with the convenience stores at a cost of $18,000 per year. Frequent stops are made to each convenience store by Kaune delivery trucks at a cost of $24,000 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.
| Total Cost Per Case | |
| Supermarkets | $fill in the blank |
| Small grocers | $fill in the blank |
| Convenience stores | $fill in the blank |
Given that:
Basic manufacturing cost = $50 per case
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