| | Table 1. Basic Information About Herald Products |
| | | RX-10 | RX-50 |
| | Position in product line | Entry-level | Top end |
| | Average selling price | $ 18,000 | $ 150,000 |
| | Variable manufacturing costs/unit | $ 9,000 | $ 63,000 |
| | Variable unit installation cost | $ 900 | $ 1,400 |
| | Sales commission rate | 5% | 5% |
| | Note: All monetary values are expressed in U.S. dollars. |
| | Table 2. Comparative ABC Warranty Service Costs per Average Service Call |
| | | Fully Loaded ABC Rate Per Productive Hour* | ABC Driver Count Product Profiles |
| | | | RX-10 | RX-50 |
| | Service labor type/class |
| | Remote (call center) level 1 | $30 | 0.4 hours | 0.7 hours |
| | Remote (phone) level 2 | $85 | 0.3 hours | 0.8 hours |
| | Field technician | $130 | 3.9 hours | 6.1 hours |
| | Parts | | $300 | $500 |
| | Historical service call rate during | Warranty | 1% | 3% |
| | * Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. |
| | Table 3: ABC Sales Profile Data Average per Successful Sales Event |
| | | Fully Loaded ABC Rate Per Productive Hour* | ABC Driver Count Product Profiles |
| | | | RX-10 | RX-50 |
| | Service labor |
| | Lead salesperson | $125 | 8.0 hours | 24.0 hours |
| | Sales support staff | $73 | 5.0 hours | 17.0 hours |
| | *Fully loaded costs include salaries or wages plus benefits, employment costs, and the costs of associated dedicated tools and assets for that employee. Productive hours are the hours spent performing the job the employee was hired to do. On an annual basis, they are paid hours less holidays, vacation, sick time, training, and administrative compliance hours. For sales, the time consumed pursuing “dead end” leads is included in the successful event averages |