Figure 7-2. Steller Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are found below:

Activity	JIT distributors	Non-JIT distributors
Sales Orders	400	25
Sales Calls	20	20
Service Calls	180	80
Average Order Size	75	1,200
Manufacturing cost/unit	$40	$40
Customer Costs:
Processing Sales Orders	$150,000
Selling Goods	$145,000
Servicing Goods	$185,000
Total	$480,000

9. Refer to Figure 7-2. Calculate the activity rate for processing sales orders rounded to 2 decimal places.

	a.	$330.09 per order
	b.	$525 per order
	c.	$275.76 per order
	d.	$352.94 per order
	e.	$342.43 per order

10. Refer to Figure 7-2. Calculate the activity rate for selling goods.

	a.	$3,625 per sales call
	b.	$3,550 per sales call
	c.	$2,200 per sales call
	d.	$4,800 per sales call
	e.	$9,400 per sales call

11. Refer to Figure 7-2. Calculate the activity rate for servicing goods rounded to 2 decimal places.

	a.	$1,089 per service call
	b.	$750.10 per service call
	c.	$675.50 per service call
	d.	$1,000 per service call
	e.	$711.54 per service call

12. Refer to Figure 7-2. Calculate the total customer cost for the JIT distributor rounded to the nearest dollar.

	a.	$487,500
	b.	$341,753
	c.	$600,000
	d.	$250,050
	e.	$448,791

13. Refer to Figure 7-2. Calculate the total customer cost for the non-JIT distributor.

	a.	$150,025
	b.	$122,500
	c.	$175,200
	d.	$138,247
	e.	$178,791