Executional Cost Drivers, Internet Retailer: Assume that you are a consultant fo

Question

Executional Cost Drivers, Internet Retailer: Assume that you are a consultant for a start-up Internet retailer, Bikes.com, which provides a variety of bicycle parts and accessories in a convenient and effective customer service approach. The firm operates from an office building and nearby warehouse located in Danville, Virginia. Currently, the firm has 10 permanent administrative staff, 6 customer service representatives who respond to customer inquiries, and 12 employees who pick, pack, and ship customer orders. All orders are placed over the firm

Explanation / Answer

I think cost driver should be number of working hours on a bicycle. firm can use this to set sales price of the bikes efficiently. It may be possible that they are selling all of their bikes at the same price even some particular bike is taking more time in manufacturing than other. in this way they can increase their sales.

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