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2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to

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2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 9 . (Prior to completing this requirement, change all worksheet figures back to their original amounts.) (a) What is the customer margin under activity-based costing when the number of orders increases to 9 ? (Enter a loss as a negative amount.) (b) What is the product margin under the traditional costing system when the number of orders increases to 9 ? (Enter a loss as a negative amount.) (c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect) If a custome orders more frecuently, but orders the same total number of unts over the counte of a yrat, ve customer margin under activily based cosing will decrease. If a customer orders more frequently, but orders the same totat number of unts over the coune of a year, the groduct margh under a trad tional costing system will decrease. If a customer orders more frequently, but orders the same total number of unitis over the coune of a year, the customer margin under? actilty based casting will be unalfected If a customer orders more frequently, but orders the same totai number of units ove the cousse of a year, the product margin under a traditional costing system will be unatiected. should be changed to 25% from 45% and the percentage attributable to supporting customers should be changed to 45% from 25% (a) Based on new number of orders in Requirement 2, what is the customer margin under activity-based costing when the data are corrected? (Enter a loss as a negative amount.) (b) Based on new number of orders in Requirement 2, what is the product margin under the traditional costing system when the data are corrected? (Enter a loss as a negative amount.) (c) Which of the following statements are true about what happens when the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of seling and administrative overhead attributable to supporting customers increases by the same amount? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) When the percentage of selling and administrative overhead attributable to processing orders decines and the percentage of seaing and administrative overhead attibutable to supporting customers increases by the same amount, costs are shited from the processing crders cost pool to the supporting customers cost pool. When the percentage of selling and administrative overhead atributable to processing orders decines and the percentage of seling and administrative overhead attributable to supporting customers increases by the same amount, costs will be shifted from customers who ordef more frequently to those who order less frequently. When the percentage of selling and administrative overhead attrbutable to processing orders decines and the percentage of seling and administrative overhead attributable to supporting customers increases by the same amoum, the customer mogins of those who order more frequently will increase relative to the customer margins of those who order less frequenty

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