Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 900 90 Sales calls 70 70 Service calls 350 175 Average order size 850 8,500 Manufacturing cost/unit $125 $125 Customer costs: Processing sales orders $3,480,000 Selling goods 1,120,000 Servicing goods 1,050,000 Total $5,650,00Required:1. Calculate the total revenues per distributor categories and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150.IT NonJITSales (in units) Sales Allocation $ $2. Calculate the customer cost per distributor type using activity-basedassignments. JIT NonJITOrdering costs Selling costs Service costs Total $ $
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Business, 22.06.2019 00:40
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Business, 22.06.2019 10:10
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Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors...
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