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Matt, I agree that its complicated but allocating the costs to a division that is entirely unrelated to the charges isnt quite fair either... If I were to do a fuel surcharge, I would do it strickly as a percentage of sales. You should know your budgeted hourly fuel cost. Once you excede this cost, I would add that amount to each account strickly as a percentage of sales.
In my budget, I used $3.50 per gallong when recalculating contract prices for this year... if it goes over that its simply coming from my NET and if it stays under, it goes to my NET.
If I were to do a fuel surcharge as sugested above, once I went above $3.50, I would take the surplus and divide it by my hourly rate... that is the amount I would increase each account, no matter how large or small it is. EDIT, on reading my post, this isnt exactly the mathematical procedure to follow but it is the gyst.
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Sales are vanity, Profit is sanity, and Cash is King.
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