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Anton's Fresh Fish and Produce is a wholesale distributor that operates in central Florida. An analysis of two of the company's customers, Seaside Spa and

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Anton's Fresh Fish and Produce is a wholesale distributor that operates in central Florida. An analysis of two of the company's customers, Seaside Spa and Sigma Assisted Living, reveals the data that follows the requirements for this problem for a recent 12-month period. Anton's uses activity-based costing to determine the cost of servicing its customers. The company had total delivery costs during the year of $765,000 and 9,000 deliveries, along with cost of $576,000 for the administrative processing of 80,000 invoices Required A. Compute the cost allocation rates for deliveries and invoice processing B. Compute the operating income that Anton's earned from the following two customers based on the additional information and using the rates found in (A) above Customer's Name Seaside Spa Sales revenue Cost of goods sold Number of Deliveries Number of Invoices $680,000 80% of sales 135 100 Sigma 370,000 90% of sales 120 180 C. Express the total of customer-related costs (i.e., deliveries and invoice processing) for each of the above two customers as a percentage of gross profit earned from each customer

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