Question
Could you please solve this question for me ASAP. Its due in 30 mins. PLEASE I am stuck! Case 4: Bethilda's Brooms Bethilda's Brooms manufactures
Could you please solve this question for me ASAP. Its due in 30 mins. PLEASE I am stuck!
Case 4: Bethilda's Brooms
Bethilda's Brooms manufactures brooms which it sells to merchandising firms such as Quality Quidditch Supplies (QQS), Brooms 'R Us (BRU), Broom-Mart (BM), Broom City (BC), Best Brooms (BB), and Clean Sweep (CS).
The list price of a broom is $48, and the full manufacturing costs are $28.
Salespeople receive a commission on sales; the commission of $30 per order is based on number of orders taken and paid in addition to regular salary. Bethilda's Brooms makes products based on anticipated demand; however, Bethilda carries an inventory of brooms, so rush orders do not result in any extra manufacturing costs over and above the $28 per broom.
Bethilda's Brooms ships finished product to the customer at no additional charge to the customer for either regular or expedited delivery. Bethilda incurs significantly higher costs for expedited deliveries than for regular deliveries. Expected and actual customer-level cost driver rates are provided.
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