Charlie's Produces is a West Coast Distributor of fresh produce. Assume the following information represents activity costs
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Question:
Charlie's Produces is a West Coast Distributor of fresh produce. Assume the following information represents activity costs for the Los Angeles distribution center.
Activity | Cost per Unit of Activity Driver |
Customer Relations | $110.00 per customer per month |
Selling | 0.05 per sales dollar |
Accounting | 7.50 per order |
Warehousing | 0.60 per case shipped |
Packing | 0.30 per case shipped |
Shipping | 0.05 per pound shipped |
The following information pertains to June operations for the Los Angeles distribution center of Charlie's Produce.
Number of Orders | 3,220 |
Sales revenue | $2,150,000 |
Cost of produce sold | $1,405,000 |
Number of customers | 432 |
Cases shipped | 57,850 |
Pounds shipped | 1,250,000 |
Determine the profitability of sales in the Los Angeles distribution center for June.
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