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[8-10] Tenair Corporation manufactures cooling system components. The company has gathered the following information about two of its customers: Evans Equipment and Rogers Refrigeration. Sales
[8-10] Tenair Corporation manufactures cooling system components. The company has gathered the following information about two of its customers: Evans Equipment and Rogers Refrigeration. Sales revenue Cost of goods sold General selling costs General administrative costs Evans Rogers Equipment Refrigeration $215,000 $154,000 95,000 68,000 30,000 21,500 21,000 15,050 Cost-driver data used by the firm and traceable to Evans and Rogers are: Customer Activity Cost Driver Sales activity Sales visits Order taking Sales orders Special handling Special shipping Customer Activity Sales activity Units handled Shipments Evans Equipment Order taking Special handling Special shipping Pool Rate $900 250 30 600 8 visits 17 orders Rogers Refrigeration 5 visits 22 orders 600 units 550 units 19 shipments 30 shipments 8. What is the gross margin rate of Tenair? a. 55.84% b. 55.82% 9. What is the total customer cost for Rogers? a. $40,850 b. $41,500 c. 55.80% d. 55.78% c. $44,500 d. $16,500
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