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0.959: 1. Outdoor Sports Corp. produces high-end sports cycles for six major buyers. Of the six major customers, one customer accounts for 50% of the

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0.959: 1. Outdoor Sports Corp. produces high-end sports cycles for six major buyers. Of the six major customers, one customer accounts for 50% of the sales of Outdoor Sports, whereas the other ve customers account for the rest of the sales of Outdoor Sports. It can be assumed that the other customers purchase parts in roughly equal quantities, and the orders placed by these customers are about the same size. For the current year, Outdoor Sports allocates $110,000 as order lling costs for the large customer. The allocation of order lling costs for the other ve customers is also $110,000. The large customer placed 20 orders during the year, whereas the smaller customers placed 200 orders during the same period. The total cost of sales force was $110,000, of which, 50% was allocated to the large customer, and the other 50% was allocated to the smaller clients. Calculate the order lling costs per order, which are used for allocation to customers using the ABC approach, assuming that Outdoor Sports made an overall sales of 12,000 units during the year. $1,500 per order $1,000 per order $500 per order $2,000 per order

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