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A firm works on the activity "delivery of packets to customers". The following information is given. Weight of all packets Total Number Volume Business year activity cost of all packets of all packets 2019 123,411 € 8,430 68,470 kg 4,000 m3 2020 135,800 € 9,000 70,000 kg 4,400 m The firm's managers are surprised, as the activity cost increased by 10%, while the number of packets increased by only 7%. a) What might, in this case, be the main cost driver for the increase in activity cost? Please give a reason for your answer.

A firm works on the activity "delivery of packets to customers". The following information is given. Weight of all packets Total Number Volume Business year activity cost of all packets of all packets 2019 123,411 € 8,430 68,470 kg 4,000 m3 2020 135,800 € 9,000 70,000 kg 4,400 m The firm's managers are surprised, as the activity cost increased by 10%, while the number of packets increased by only 7%. a) What might, in this case, be the main cost driver for the increase in activity cost? Please give a reason for your answer.

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 32E
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A firm works on the activity "delivery of packets to customers". The following information is given. Total Number Weight of all packets Volume Business year activity cost of all packets of all packets 2019 123,411 € 8,430 68,470 kg 4,000 m? 2020 135,800 € 9,000 70,000 kg 4,400 m3 The firm's managers are surprised, as the activity cost increased by 10%, while the number of packets increased by only 7%. a) What might, in this case, be the main cost driver for the increase in activity cost? Please give a reason for your answer. b) Based on your answer to question a, what is the corresponding activity-cost rate?
Transcribed Image Text:A firm works on the activity "delivery of packets to customers". The following information is given. Total Number Weight of all packets Volume Business year activity cost of all packets of all packets 2019 123,411 € 8,430 68,470 kg 4,000 m? 2020 135,800 € 9,000 70,000 kg 4,400 m3 The firm's managers are surprised, as the activity cost increased by 10%, while the number of packets increased by only 7%. a) What might, in this case, be the main cost driver for the increase in activity cost? Please give a reason for your answer. b) Based on your answer to question a, what is the corresponding activity-cost rate?
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