Why The Cost Of \$ 240 Would Have Been Calculated?

2925 Words May 30th, 2015 12 Pages
A family in Cambridge received their Christmas presents from friends in Paris this week – 50 days after their parcel was posted. French posties sent it to Cambodia, and the near-20,000-kilometre trip, via several other countries, is estimated to have cost delivery firm ParcelForce \$240 to deliver three children’s books.

1. How do you think the cost of \$240 would have been calculated? Parcel Force must have the reached the estimate \$240 to deliver the three children books in Cambridge, based on many assumptions since we do not have the actual details of the fixed cost and variable cost. However the weight of the parcel and distance would be considered while calculating the risk as the parcel travelled around several countries including an under developed nation like Cambodia to a developed nation Cambridge. Since Parcel Force realized that the courier had been send to a different place, they had to hurry up and make sure that it will reach the correct destination at the earliest. They will also incur insurance charges to insure the books to return to the correct destination. Another point of consideration can be urgency of the transporting through various terrains of around 20,000 kms and the freight and air cargo charges which includes in it.
Parcel Force will incur cost towards labour for all those who were engaged in delivering the couriers over the course of the different countries the courier passes from. Finally, the nature of the products being couriered needs…