1. Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below:

Cost Pool

Annual Cost

Cost Driver

Annual Driver Quantity

Processing electronic orders

$1,000,000

Number of orders

500,000

Processing non-electronic orders

$2,000,000

Number of orders

400,000

Picking orders

$3,000,000

Number of different products ordered

800,000

Packaging orders

$1,500,000

Number of items ordered

50,000,000

Returns

$2,000,000

Number of returns

50,000

1. If all costs were assigned to customers based on the number of items ordered, what would be the cost per item ordered?