Answer:
Profit contribution that can be earned can be calculated as follows:
Profit contribution : It is the contribution calculated by finding out the difference of the total costs from the revenue.
Referring exhibits 1 and 2 the contribution can be summarized as below:
The following spreadsheet shows the calculation of the contribution :
Thus, the profit contribution that can be earned by carrying 1 ton of tapioca is $1.26. The profit contribution of carrying 1 ton of merchandise cannot be estimated as full information regarding the portage sues and the cargo cost for the same is not mentioned.
Answer:
The contribution that can be earned on one round trip by Tashtego between Singapore and Balik Papan can be calculated as follows:
Profit contribution: It is the contribution that is calculated by finding out the difference of the total costs from the revenue.
The following spreadsheet shows the calculation of the total contribution:
Thus, the profit contribution that can be earned is $20274.7.
Answer:
The incremental trip cost of Tashtego ship on the round trip between Singapore and Balik papan on a large vessel can be calculated using the exhibits 2 and 3.
The following spreadsheet shows the calculation of incremental trip cost :
Thus, the cost per round is $17,541.20 and contribution profit per year is $869,690.