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Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two dasses of distributors: IT distributors and non-IT distributors. The IT distributor places small, frequent orders,
Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two dasses of distributors: IT distributors and non-IT distributors. The IT distributor places small, frequent orders, and the non-Trends to place larger less freq orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-reated activities and costs for the most recent Non-IT Distributors Sales orders Sales calls Service calls Distributors 900 10 70 70 350 175 550 5,500 $125 $125 Average order sin Manufacturing cost/unit Customer costs Processing sales orders $3,430,000 Selling goods 1,120,000 1,050,000 $5,400,000 Servicing goods Total Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to mach distributor type by using revenues as the acation Selling price for one unt1150 to the nearest dollar Sales (in units) 495,000 Non-IT 495,000
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