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Ex 5-35 (Algo) ABC; Selling Costs (LO 5-2, 5-4) Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites

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Ex 5-35 (Algo) ABC; Selling Costs (LO 5-2, 5-4) Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsycom. Some of the items are manufoctured by TCC. While others are purchased for resale. For the products if manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct materiat, direct labor, and the associoted overtheod costs in addition to these product costs, TCC incurs substantial seling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurted over the past two years for one of its products, skeins, of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past yeor and the cost divers are as follows: The knitting yarn is sold to retail outlets in boxes, each containing 12 skeins of yarn. The sale of partial boxes is not permitted Commissions are paid on sales to retail outlets but not on online sales. The cost of onine sales includes technology infrastructure costs and the wages of personnel who process the online orders. Jackson believes that the selling costs vary significantly with the sure of the order Order sizes are divided into three categories as follows An analysis of the previous year's records produced the following statistics. Required: 1. Prepare a schedule showing rCC's total selling cost for each order size and the periskein selling cost within each order size. Note: Round your intermediate calculations and unit cost per order to 2 decimal places. 1. Prepare a schedule showing TCC's total selling cost for each order size and the per-skein selling cost within each order size. Note: Round your intermediate colculations and unit cost per order to 2 decimal places. 2. An analysis of selling costs shows Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not avaliable. 2 Management may want to consider offering discounts for lavge orders 2 Small orders are preferabie to medium sized orders 2 Large orders are preferable to medium sized orders 2 Marketing should be focused on small sized orders

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