JAM is a major manufacturer of household goods.   Distribution method Total cost per year: Website Sales $20,000 Retailer Stockists $40,000 Wholesale Stockists $15,000 Industry Catalogue Sales $7,000 Sales made at factory site $4,500 Calculate the total cost saving that JAM would make if it eliminates all indirect distribution channels of sale.   Give your answer to the nearest whole $. Do not include symbols, commas or letters in your response.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8E
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JAM is a major manufacturer of household goods.

 

Distribution method Total cost per year:

Website Sales $20,000

Retailer Stockists $40,000

Wholesale Stockists $15,000

Industry Catalogue Sales $7,000

Sales made at factory site $4,500

Calculate the total cost saving that JAM would make if it eliminates all indirect distribution channels of sale.

 

Give your answer to the nearest whole $. Do not include symbols, commas or letters in your response.

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