Question continuation
(a) Determine the shipping and handling activity for each product and
(b) determine the total shipping and receiving costs for the china if 3,500 boxes are shipped.
Answer:
(a)
For Glass = $14
For Fine China = $28
For Everyday dinner = $42
(b) $28 * 3,500 = $98,000
Step-by-step explanation:
Given
Shipping and Handling Activity = $7 per pound
Box of glass = 2 pounds
Box of fine China = 4 pounds
Box of everyday dinner = 6 pounds
a.
Shipping and Handling Activity
For Glass = $7 * 2
For Glass = $14
For Fine China = $7 * 4
For Fine China = $28
For Everyday dinner = $7 * 6
For Everyday dinner = $42
b.
Total Shipping and Receiving cost for Fine China
If the shipping and receiving cost of a box of fine China is $28
Then, the shipping and receiving cost of 3500 boxes is
= 3,500 * $28
= $98,000
)