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

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Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below: Cost Driver Cost Pool Annual Cost Annual Driver Quantity Number of Number of Processing electronic orders $1,000,000 orders 500,000 Processing non-electronic orders $2,000,000 orders 400,000 Picking orders $3,000,000 ordered 800,000 Packaging orders $1,500,000 ordered 50,000,000 Number of different products Number of items Returns returns $2,000,000 Number of 50,000 One customer of Carlton orders $800,000 sales value worth of product each year by making 50 electronic orders. The direct cost of these orders is $500,000. The customer orders only two different products with 1.400 non-electronic annual orders and has ordered a total of 28,000 items during the year, and returns nothing. Using an activity based method, what are the indirect costs associated with serving this customer

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