Caiman Distribution Partners is the Brazilian cistribution company of a U.S. con
ID: 3277258 • Letter: C
Question
Caiman Distribution Partners is the Brazilian cistribution company of a U.S. consumer products firm. Intlation in Brazil has mde bidding and budgeting citticult for marketing managers trying to penctrate some of the country's rurel reglons The company expects to distrihute 440000 cases of products In Rrazll next month The controller has classlfied operating costs (exclicing costs af the distributed prodluct as follows Operating Cost S 350,000 All variatble $ 150.000 Fixed Truck cxpensc Building leeses Utilities Warchouse labor Equipment leases Data processing equlpment Other 1,215.000 180000 Flxod 865,000 560000 Fixed 220,000 130000 Fixed 850,000 135 000 Fixed 775,000 610,000 Fixed 865,000 870,000 410000 Fixed All fixed $6,230,000 Although overheed costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distnbution sector to rotecast overhedd in marmer rrore likely lo capure the economics of the business. Following instructions trom the corporate othices, the controller's ofrice in Brazil collecred the rollowing intormation for monthly operations from last ycar Operating Costs $5,709139 5,816,638 5,859.90S 5.937617 5,919,135 6,053,304 5928 495 6,13,868 6,136,130 6,196,625 6.218.799 6,372,255 Cases 351,000 368 000 364,000 386,000 Price Index 116 118 119 123 125 401,000 373,000 418,000 404.000 127000 423,000 438000 129 134 10 133 137 These data are considered representative for both past and future operations in Brazil.Explanation / Answer
Ans :
C-1:
Intercept : $3,381,222
Cashes :$6.71
C-2:
Estimate of Operating Cost : $6,333,622
I compared above answers with my answers for part C-1 and C-2 but not found any mismatch.
You have done fantastic Job!!! I am not sure, why system is showing answer for intercept is wrong.