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Acitivity cost pool Estimated indirect ) Total expected use of cost Cost driver Use of cost Supermarket 150 Orders processing Number of orders Returns processing
Acitivity cost pool Estimated indirect ) Total expected use of cost Cost driver Use of cost Supermarket 150 Orders processing Number of orders Returns processing Number of retums Delivery Number of deliveries Rush orders Number of border Sales visits $200,000 550.000 5100.000 $70,000 $20.000 700 1 2 3 100 100 50 50 25 100 200 100 10 20 20 30 25 25 Read: Assign the activity costs to ach of the three customers (6 marks) Calculate the contribution for each customer if the sales pattern for each is 23 follows: (6 marks) Supermarket customer Sales revenue 1 $350,000 2 S160.000 3 $210.000 **Selling price is malced up 50% en direct cost of flowers Hins conduct a customer profitability analysis based on the above customer related indirect costs Chexortable to rest What conclusion can we draw from the customer profit analysis? Advise the management of the Floral Art Company as to whether any changes should be made in its relationships with customers Advie Hector as to how he should go about executing these changes. (4 marks)
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