A quotation and a misleading margin comparison
A French road-transport business receives a request for a repeat movement whose model distance is 360 kilometres. For this teaching exercise the distance coefficient is 0.60 euros per kilometre, and all other assigned operating costs together are 340 euros. The manager wants an eight percent margin on the selling price, before any tax. One colleague multiplies total cost by 1.08 and calls the result the required price. A second dashboard reports 445 deliveries satisfying the agreed on-time and complete conditions from a population of 500 orders. No statutory tariff, current fuel factor or carrier-specific cost is asserted. The team must calculate the two model results and explain why a correct calculation does not establish safe loading or every contractual obligation.
1. Calculate cost and price for the stated margin.
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The cost is 360 × 0.60 + 340 = 556 euros. With an eight percent margin on sales, price is 556 / 0.92 = approximately 604.35 euros. A markup on cost uses a different denominator.
2. Calculate the stated OTIF result and identify its limit.
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The defined population gives 445 / 500 × 100 = 89 percent. This measures the stated service outcome, not axle compliance, unreported damage or a different denominator such as only completed deliveries.