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2. Estimate the cost of a purchase order, shipment, repair order, and setup. ls the information useful for activity analysis and process redesign? 3. Using
2. Estimate the cost of a purchase order, shipment, repair order, and setup. ls the information useful for activity analysis and process redesign? 3. Using ABC costing, what is the total overhead cost of each product? Also, compute the per unit overhead and per unit total cost of each product. 4. Using your ABC costs what prices you would want to charge assuming you wish to keep pricing at a 50% markup on total unit cost. 5. Using your new cost information explain why your competitors are bidding to take away the coach business from you but not the first class business when you formulate your bids using the volume-based product costing system (single driver system). 6. Assume you are forced to retain your volume-based prices because they are on a published price list. Using the ABC costs and the volume-based prices, compute the total expected profits. How do these profits differ from the expected profits using the volume-based product costing system, explain? Does this suggest that ABC costs are useless? 7. Assume your ABC costs are accurate, how could you increase your expected profits without changing prices or underlying production procedures
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