Stage 2 ABC for a Wholesale CompanyInformation is presented for the activity costs of Brighton Wholesale Company:ActivityCost per Unit of Activity DriverCustomer relations$82.00 per customer per monthSelling0.09 per sales dollarAccounting7.00 per orderWarehousing0.60 per unit shippedPacking0.35 per unit shippedShipping0.40 per pound shippedThe following information pertains to Brighton Wholesale Company's activities in Colorado for the month of June 2017:Number of orders320Sales revenue$218,000Cost of goods sold$98,100Number of customers40Units shipped5,400Pounds shipped81,000RequiredDetermine the profitability of sales in Colorado for June 2017.Do not use a negative sign with your answers.Profitability of Sales in ColoradoMarch 2017Sales revenue AnswerLess: Cost of goods soldAnswer Customer relationsAnswer Selling expensesAnswer AccountingAnswer WarehousingAnswer PackingAnswer ShippingAnswerAnswerProfitability of sales Answer

Profitability of sales: It is a measure to determine how much of every sales dollar the company is…

Answered: Stage 2 ABC for a Wholesale…

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

Chapter3: Cost Behavior And Cost Forecasting

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Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Stage 2 ABC for a Wholesale Company
Information is presented for the activity costs of Brighton Wholesale Company:

Activity	Cost per Unit of Activity Driver
Customer relations	$82.00 per customer per month
Selling	0.09 per sales dollar
Accounting	7.00 per order
Warehousing	0.60 per unit shipped
Packing	0.35 per unit shipped
Shipping	0.40 per pound shipped

The following information pertains to Brighton Wholesale Company's activities in Colorado for the month of June 2017:

Number of orders	320
Sales revenue	$218,000
Cost of goods sold	$98,100
Number of customers	40
Units shipped	5,400
Pounds shipped	81,000

Required
Determine the profitability of sales in Colorado for June 2017.
Do not use a negative sign with your answers.

Profitability of Sales in Colorado
March 2017
Sales revenue		Answer
Less:
Cost of goods sold	Answer
Customer relations	Answer
Selling expenses	Answer
Accounting	Answer
Warehousing	Answer
Packing	Answer
Shipping	Answer	Answer
Profitability of sales		Answer

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