Multiple Choice

• $0.

• $6,365.

• $4,185.

• $985.

• $6,485.

Smith Company sells its products at $760 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Sales calls Order processing Deliveries Sales returns Cost Driver and Rate $ 530 per visit $ 165 per order $ 60 per order + $0.50 per mile $ 75 per return and $3 restocking per unit returned Smith Company has gathered the following data pertaining to activities it performed for two of its customers: XBT 23 630 NINTO 2 2,130 4 Number of orders Number of parts per order Sales returns: Number of returns Number of units returned (per return) Number of sales calls Miles per delivery Shipping terms 40 10 10 50 6 20 FOB, Destination 10 FOB, Factory What is Smith's total sales-sustaining cost applicable to XBT as a customer