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

Refer to Figure 7-2. Calculate the activity rate for service calls rounded to 2 decimal places.

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