Question
Casey corporation provides you with the following data: Rayan construction Wilson builders Cost per activity unit Sales $400000 $400000 Contribution margin 30% 25% Volume-related costs
Casey corporation provides you with the following data:
Rayan construction Wilson builders Cost per activity unit
Sales $400000 $400000
Contribution margin 30% 25%
Volume-related costs $0.27 per sales $
Number of orders 50 20 $450 per order
Number of deliveries 150 40 $100 per delivery
Casey further inform you that their ABC system has identified three primary cost pools (1) the volume sales (2) the number of orders and (3) the number of deliveries -as the cost drivers when allocating indirect costs to determine customer profitability
Required - Calculate the profit earned from Rayan construction and from wilson builders
please show full work
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