Essay Easter Talon Transport - Relevant Costing

1961 WordsDec 26, 20128 Pages
Eastern Talon Transport Relocation Analysis: The Concepts of Relevant Costing Case Study 1 Report Prepared By: Executive Summary Companies always strive to create value for their customers. In the Canadian trucking industry, over $30 billion in revenues were generated by for-hire companies such as Eastern Talon Transport and to attain a sizeable share of these revenues, it must also strive to create value for it’s customers. In 2004, value is more important than ever. Trade activity between Canada and the United States declined and has resulted in a 1% decline in revenues. With rising costs of fuel and insurance, profitability within the industry begins to slide. Both of these factors…show more content…
Regardless of timing, the sublet of the floor currently occupied would equal $500,000 in savings per year, or $41,666.67 per month. In calculating savings in salary expenses and rent, ETT would see recurring savings related to operations of $1,176,000 per year. | |Laval* |Mississauga |Recurring Savings / per year | |Total Manager Salaries (incl. |$365,000 |$219,000 |$146,000 | |benefits) | | | | |Total Dispatcher Salaries (incl. |$2,385,000 |$1,855,000 |$530,000 | |benefits) | | | | |Total Salaries Expense |$2,750,000 |$2,074,000 |$676,000 | | | | | | |Rent |$500,000 |$0 |$500,000 | | | |

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