Wisconsin Administrative Code › Department of Agriculture, Trade and Consumer Protection › ATCP 90-139 - Trade and Consumer Protection › Chapter ATCP 103 - Dairy trade practices › Section ATCP 103.15 - Distribution expense and cost

Current through June 24, 2024
(1) The functions
				included in this category are route operations and supervision. The expenses
				shall include, but not be limited to, allocated garage expenses; allocated
				general and administrative expenses; salaries, commissions and fringe benefit
				expenses of route driver-salespersons, relief driver-salespersons, and their
				immediate supervisors; route truck operation expenses; all other direct
				expenses of route operation. Expenses which are not included in this category
				are salaries, commissions and fringe benefit expenses of driver-salespersons
				operating as promoters not assigned to regular delivery routes; route truck
				operation expense of trucks regularly driven by such promoters; operation
				expense of trucks used to haul products to a depot.
(2) The expenses accumulated in this category
				shall be assigned to the distribution categories, whenever possible, on the
				basis of direct measurement or identification.
(3) Garage expense shall be assigned to
				distribution categories on the basis of the number of vehicles normally
				assigned to each category, and on the basis of the unit factor cost determined
				in "garage expense."
(4) The
				expenses in this category which cannot be specifically identified and assigned
				to specific distribution categories shall be allocated to such categories on
				the basis of the number of distribution routes in each category.
(5) The total of the expenses assigned to the
				wholesale distribution category shall be further computed in accordance with
				the following steps to arrive at the per unit wholesale delivery cost:
(a) Summarize all wholesale distribution
				expenses (labor and truck expenses).
(b) Summarize and total all routeperson's
				time for all routes being analyzed. Total time shall be summarized in
				minutes.
(c) Divide total wholesale
				distribution expenses by the total number of delivery minutes to get delivery
				cost per minute.
(d) Multiply cost
				per minute by service time to get specific cost per delivery. For purposes of
				this calculation, the wholesaler shall use appropriate wholesale delivery
				services times for full service delivery, modified drop delivery and drop
				delivery as set forth in s.
				ATCP 103.17, Tables III,
				IV and V, unless the wholesaler submits documentation proving that the
				wholesaler's actual delivery service times are different from those shown in
				the tables. Service time for warehouse delivery of milk products and wholesale
				ice cream deliveries shall be based on actual measurement.
(e) Multiply all time other than service time
				by cost per minute to get total common cost.
(f) Divide total common cost for all routes
				by the number of deliveries of all types to get common cost per
				delivery.
(g) Add specific cost to
				common cost to get total cost per delivery.
(h) Divide total cost per delivery by the
				number of points delivered, as determined by s.
				ATCP 103.17, Table II, to
				get delivery cost per unit.