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<p>[QUOTE=&quot;Blaubart, post: 1499065, member: 37498&quot;]Much would depend on how the seller is allocating his shipping and handling costs.</p><p><br /></p><p>For example, what if a seller hires a person to handle all of his shipping and purchases a computer and a printer specifically for shipping and he wants to allocate all of the expenses associated with shipping to the &quot;Shipping and Handling&quot; charge.&nbsp; Fair enough, right?</p><p><br /></p><p>The labor costs him $45,000/yr (pay, benefits and taxes) and the computer and printer cost him $3,000 every four years.&nbsp; Let&#039;s say he sells 2000 items per month and his average variable cost (postage, packaging, paper, toner, electricity, etc) for each item is $2.&nbsp; Just to make things easy, let&#039;s say they have the carrier pick up the packages at no additional expense.</p><p><br /></p><p>What are his average shipping costs per item?</p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>VVV Spoiler Below VVV</p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>His average shipping cost per item is $3.90.&nbsp; (45000+(3000/4)+2000*2*12)/(2000*12)</p><p><br /></p><p>But feel free to have a cow and give him a mediocre rating for shipping when the package arrives with only $1.50 in postage paid.[/QUOTE]</p><p><br /></p>

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