# Case Study Tashtego

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Tashtego Case Question 1: How much profit contribution can be earned by carrying 1 ton of tapioca from Balik Papan to Singapore, dock to dock, considering revenue and cargo costs? How much can be earned by carrying 1 ton of general merchandise from Singapore to Balik Papan? Balik Papan to Singapore Revenue (per ton): \$5.10 (given) Variable costs (per ton): \$1.43 (.41 + .88 + .14) • Lighterage: \$0.41 (.25 + .16) • Stevedoring: \$0.88 (.56 + .32) • Cranage: \$0.14 (given) Contribution margin: \$3.67 (5.10 - 1.43) Singapore to Balik Papan Revenue (per ton): \$2.70 (given) Variable costs (per ton): \$1.43 (same as above) Contribution margin: \$1.27 (2.70 - 1.43) Question 2: Given the contribution/ton figures arrived at in question 1, what is the total contribution which can be earned on one round trip by Tashtego between Singapore and Balik Papan and return? By one of the large vessels? Tashtego…show more content…
Tashtego Balik Papan to Singapore: \$14,496.50 (3.67 CM x 3,950 tons) Singapore to Balik Papan: \$4,000.50 (1.27 CM x 3,150 tons) Total profit contribution: \$18,497 Large Vessel Balik Papan to Singapore: \$25,139.50 (3.67 CM x 6,850