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Kirk, Inc. is contemplating the use of a CPM system. They have estimated that their indirect customer servicing costs and cost drivers are as follows:
Kirk, Inc. is contemplating the use of a CPM system. They have estimated that their indirect customer servicing costs and cost drivers are as follows: Cost Pool Order processing Order picking Shipping Processing returns Estimated Annual Costs $251,125 720.000 72,000 5,200 Estimated Cost Driver Activity 122,500 orders 80,000 line items 20,000 lbs shipped 650 items returned In the current year, one of Kirk's customers, Omega Co., had the following activity: Sales Cost of goods sold Number of orders placed Number of line items per order Pounds shipped Number of items returned $74,000 $64,609 20 10 100 20 I Determine the profitability of the Omega Co. account
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