2 The knitting yarn is sold to retail outlets in boxes, each containing 12 skeins of yam. The sale of partial boxes is not permitted. Commissions are paid on sales to retail outlets but not on catalog sales. The cost of catalog sales includes telephone costs and the wages of personnel who take the catalog orders. Jackson believes that the selling costs vary significantly with the size of the order. Order sizes are divided into three categories as follows: 3 Order points Size Catalog Sales Retail Sales Small 1-10 skeins 1-10 boxes Medium 11-20 11-20 eBook Large skeins Over 20 skeins boxes Over 20 boxes Print Reference An analysis of the previous year's records produced the following statistics. Retail sales in boxes (12 skeins per box) Catalog sales in skeins Number of retail orders Catalogs distributed Order Size Small Medium Large Total 3,500 75,000 198,000 276,500 99,000 72,000 64,000 235,000) 685 3,415 7,900 12,000 246,725 518,775 137,500 903,000 Required: 1. Prepare a schedule showing Redwood Company's total selling cost for each order size and the per-skein selling cost within each order size. (Round your intermediate calculations and unit cost per order to 2 decimal places.) REDWOOD COMPANY Computation of Selling Costs By Order Size and Per Skein Within Each Order Size Order Size Small Medium Large Total Sales commissions $ Catalogs 0 Cost of catalog sales 0 Credit and collection O Total cost for all orders of a given $ 0 $ 0 $ size 0 $ 0 Units (skeins) sold Unit cost per order of a given size 2. An analysis of selling costs shows: (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.) Management may want to consider offering discounts for large orders. Small orders are preferable to medium sized orders. Large orders are preferable to medium sized orders. Marketing should be focused on small sized orders.