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DelauderEnterprises makes a variety of products that it sells to other businesses. The companys activity-based costing system has four activity cost pools for assigning costs

DelauderEnterprises makes a variety of products that it sells to other businesses. The companys activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:

Activity Cost Pool Activity Measure Activity Rate
Supporting assembly Direct labor-hours (DLHs) $ 3.45 per DLH
Processing batches Number of batches $ 193.30 per batch
Processing orders Number of orders $ 83.05 per order
Serving customers Number of customers $ 1,608.00 per customer

The cost of serving customers, $1,608.00 per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the companys products. The details of last years purchases of this product are listed below:

Number of units purchased 1,500 units
Number of batches 5 batches
Number of orders 2 orders
Direct labor-hour requirement 0.25 DLHs per unit
Selling price $ 18.55 per unit
Direct materials cost $ 8.35 per unit
Direct labor cost $ 3.95 per unit

According to the ABC system, the customer margin for this customer this past year was closest to:

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