JAM is a major manufacturer of household goods. Distribution method Total cost per year: Website Sales $20,000 Retailer Stockists $40,000 Wholesale Stockists $15,000 Industry Catalogue Sales $7,000 Sales made at factory site $4,500 Calculate the total cost saving that JAM would make if it eliminates all indirect distribution channels of sale. Give your answer to the nearest whole $. Do not include symbols, commas or letters in your response.
JAM is a major manufacturer of household goods. Distribution method Total cost per year: Website Sales $20,000 Retailer Stockists $40,000 Wholesale Stockists $15,000 Industry Catalogue Sales $7,000 Sales made at factory site $4,500 Calculate the total cost saving that JAM would make if it eliminates all indirect distribution channels of sale. Give your answer to the nearest whole $. Do not include symbols, commas or letters in your response.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8E
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Question
JAM is a major manufacturer of household goods.
Distribution method Total cost per year:
Website Sales $20,000
Retailer Stockists $40,000
Wholesale Stockists $15,000
Industry Catalogue Sales $7,000
Sales made at factory site $4,500
Calculate the total cost saving that JAM would make if it eliminates all indirect distribution channels of sale.
Give your answer to the nearest whole $. Do not include symbols, commas or letters in your response.
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