Activity Based Customer Driven Costs:

Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is \\( \\$ 150 \\). Round calculations to the nearest dollar. 2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost assignments. Round the interim calculations to the nearest dollar. For non-JIT distributors by how much can the price be decreased without affecting customer profitability? Round your answer to the nearest cent. \\( \\$ \\) per unit 3. Assume that the JIT distributors are simply imposing frequent orders on Stillwater Designs. No formal discussion has taken place betwe