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

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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…show more content…
As we see that books are being couriered, they should ensure that it is protected. Thermocol, cardboard and plastic are some of the materials which can be used to protect the books and cost will be incurred in using the materials. 2. Regardless of the exact method used to calculate the cost of delivering the lost parcel, in what ways or ways would such a calculation be subjective? Give examples to illustrate your answer. Done Parcel Force has incurred an additional cost of \$240 to make sure that the parcel delivered to Cambodia instead of Cambridge is send to the correct recipient after travelling through several countries for 50 days. Cost of sending a parcel will differ based upon the distance travelled as longer the distance, the more will be the cost. The parcel company is a service company and each company should know the cost which will incur for each of its delivery. In order to calculate the total cost, we need to find the cost per unit. The parcel had to be crossed from several countries from Cambodia to Cambridge and hence there will be transportation charges. The weight of the parcel is yet another factor to be taken into consideration because there was three books. In order to ensure that the Parcel Force reduces its damage, it might have availed any kind of emergency and urgent delivery channels to deliver the books from Cambodia to Cambridge. For instance they might have availed air cargo to make sure that the delivery