Activity-Based Customer-Driven Costs has two classes of distributors: JIT distributors and nonJIT dis- of distributors: J OBJECT nbutors. TheJ sIIT distributor places small, trequent orders, and the nonJIT distributor tends to ter Designs nbutors. m less frequent orders. Both types of distributors are buying the same product. Still pluce larger, less ace largeovides the following information about customer-related activities and costs for est ia the most recent quarter JIT Distributors Distributors NonJIT Sales orders Sales calls Service calls Average order size Manufacturing cost/unit Customer costs: 700 70 350 750 $125 70 70 175 7,500 Processing sales orders Selling goods Servicing goods $3,080,000 1,120,000 1,050,000 $5,250,000 Total Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each 2CONCEPTUAL CONNECTION Calculate the customer cost per distributor type using ac- tiviy-based cost assignments. Discuss the merits of offering the nonJIT distributors a $2 CONCEPTUAL CONNECTION Assume that the JIT distributors are simply imposing the on Stillwater Designs. No formal discussion has taken place between JIT stributor type by using revenues as the allocation base. Selling price for one unit is $150 price decrease (assume that they are agitating for a price concession). frequent orders mers and Stillwater Designs regarding the supply o illwater Designs' management? f goods on a JIT basis. The sales ved over time. As an independent consultant, what would you suggest to