Case questions:

1. Calculate the available practical capacity in minutes for the Production and Distribution Depts. and determine the capacity cost rate for each of Berendsen's resources.

2. Provide the time equations for the activities, and report on (use minutes)

3. Calculate the EBIT (earnings before interest and taxes) per customer using TDABC (include excess capacity)

4. What are the implications to Berendsen from a cost-to-serve perspective?

5. Derive an offer for Laki and Bifrost given the implications of Q4.

6. Prepare a budget for 2015 and draw conclusions on the supplied capacity.