Information about KC's clients follows: AC DC MC JC RC BC Total number of 225 520...

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Information about KC's clients follows: AC DC MC JC RC BC Total number of 225 520 295 110 390 1,050 units purchased Number of 5 20 6 9 18 actual orders Number of written 10 20* 9 12 24 36 orders Total number of miles driven 360 580 350 220 7.90 850 to deliver all products Total number of 15 40 0 0 35 40 units returned Number of returned shipments Number of expedited 3 2 0 0 0 1 5 deliveries * Because DC places 20 separate orders, its order costs are $15 per order. All other orders are multiple smaller orders and so have actual order costs of $8 each. 4 Required 1. Classify each of the customer-level operating costs as a customer output unit-level, customer batch-level, or customer-sustaining cost. 2. Using the preceding information, calculate the expected customer- level operating income for the sixcustomers of KC Corporation. Use the number of written orders at $15 each to calculate expectedorder costs. 3. Recalculate the customer-level operating income using the number of written orders but at their actual $8 cost per order instead of $15 (except for DC, whose actual cost is $15 per order). How will KCCorporation evaluate customer-level operating cost performance this period? 4. Recalculate the customer-level operating income if salespeople had not broken up actual orders intomultiple smaller orders. Don't forget to also adjust sales commissions. Information about KC's clients follows: AC DC MC JC RC BC Total number of 225 520 295 110 390 1,050 units purchased Number of 5 20 6 9 18 actual orders Number of written 10 20* 9 12 24 36 orders Total number of miles driven 360 580 350 220 7.90 850 to deliver all products Total number of 15 40 0 0 35 40 units returned Number of returned shipments Number of expedited 3 2 0 0 0 1 5 deliveries * Because DC places 20 separate orders, its order costs are $15 per order. All other orders are multiple smaller orders and so have actual order costs of $8 each. 4 Required 1. Classify each of the customer-level operating costs as a customer output unit-level, customer batch-level, or customer-sustaining cost. 2. Using the preceding information, calculate the expected customer- level operating income for the sixcustomers of KC Corporation. Use the number of written orders at $15 each to calculate expectedorder costs. 3. Recalculate the customer-level operating income using the number of written orders but at their actual $8 cost per order instead of $15 (except for DC, whose actual cost is $15 per order). How will KCCorporation evaluate customer-level operating cost performance this period? 4. Recalculate the customer-level operating income if salespeople had not broken up actual orders intomultiple smaller orders. Don't forget to also adjust sales commissions.