Smith Company sells its products at $620 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Sales calls Order processing Deliveries Sales returns $460 per visit $130 per order $80 per order + $0.50 per mile $90 per return and $3 restocking per unit returned Smith Company has gathered the following data pertaining to activities it performed for two of its customers: Cost Driver and Rate Number of orders Number of parts per order Sales returns: Number of returns Number of units returned (per return) Number of sales calls Miles per delivery Shipping terms What is Smith's total customer batch-level cost applicable to Ninto? XBT 16 560 4 40 12 10 FOB, Factory NINTO 2 2,060 10 50 10 20 FOB, Destination
Smith Company sells its products at $620 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Sales calls Order processing Deliveries Sales returns $460 per visit $130 per order $80 per order + $0.50 per mile $90 per return and $3 restocking per unit returned Smith Company has gathered the following data pertaining to activities it performed for two of its customers: Cost Driver and Rate Number of orders Number of parts per order Sales returns: Number of returns Number of units returned (per return) Number of sales calls Miles per delivery Shipping terms What is Smith's total customer batch-level cost applicable to Ninto? XBT 16 560 4 40 12 10 FOB, Factory NINTO 2 2,060 10 50 10 20 FOB, Destination
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...
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