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Can you help with this question? Please provide all logic/formulas used in description. Redwood Company sells craft kits and supplies to retail outlets and through

Can you help with this question? Please provide all logic/formulas used in description.

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Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Amount Cost Driver Sales commissions $ 547,000 Boxes of yarn sold to retail stores Catalogs 602, 280 Catalogs distributed Cost of catalog sales 139, 200 Skeins sold through catalog Credit and collection 93, 600 Number of retail orders Total selling costs $1, 382, 080 The knitting yarn is sold to retail outlets in boxes, each containing 12 skeins of yarn. The sale of partial boxes is not permitted. Commissions are paid on sales to retail outlets but not on catalog sales. The cost of catalog sales includes telephone costs and the wages of personnel who take the catalog orders. Jackson believes that the selling costs vary significantly with the size of the order. Order sizes are divided into three categories as follows: Order Size Catalog Sales Retail Sales Small 1-10 skeins 1-10 boxes Medium 11-20 skeins 11-20 boxes Large Over 20 skeins Over 20 boxes An analysis of the previous year's records produced the following statistics. Order Size Small Medium Large Total Retail sales in boxes (12 skeins per box) 3, 060 73 , 500 197, 000 273, 500 Catalog sales in skeins 8, 000 71, 000 000'89 232, 000 Number of retail orders 675 3, 365 7, 660 11, 700 Catalogs distributed 315, 200 710, 560 178, 800 1, 204, 560 Required: 1. Prepare a schedule showing Redwood Company's total selling cost for each order size and the per-skein selling cost within each order size. (Round your intermediate calculations and unit cost per order to 2 decimal places.) REDWOOD COMPANY Computation of Selling Costs By Order Size and Per Skein Within Each Order Size Order Size Small Medium Large Total Sales commissions $ Catalogs Cost of catalog sales Credit and collection Total cost for all orders of a given size o O S O S Units (skeins) sold Unit cost per order of a given size

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