need help, not really understanding this accounting chapter

Johnson Beverage sell to Retail store customers-about 20 customers Last year Revenue was $12 million -Sell Sport Drinks (Exhibit 1 Customer Profitability) Odd Lots Others Total JB Midwellon $1,192,000 Net Revenue Cost of Goods Sold Gross Profit Customer Service Costs Customer Profit Profit % $454,500 393,000 61,500 45,450 16,050 $1,168,000 1,048,000 $121,520 7,886,200 1,177,780 10,480,000 1,520,000 1,200,000 144,000 119,200 24,800 104,800 12,152 3.8% 116,800 3.0% 2.7% List price is $15.20 per case Cost is $13.10 per case Discounts vary by customer (Exhibit 2 Customer information) Downtown Retail $15.15 Odd Lots Total JBI Others $ 15.06 15.00 800,000 Price per Case Number of Cases Number of Orders Number of Deliveries Miles per Delivery Expedited Deliveries Sales Visits $ 15.19 S14.60 80,000 80,000 30,000 602,000 4,480 Customer Saver Superstore is not happy-they think they are paying too much Customer Service Cost Detail In addition to COGS Johnson has Customer Service costs Cost of $1.2 million per year-like overhead See Table:1 Currently allocated based on % of revenue Product Handling Taking Orders from Customers Delivering the Product Expediting Deliveries Sales visits Total $672,000 They Run a report of Profitability by Customer See Exhibit 1 90,000 1,200,000 Can you help them using Activity Based costing? Preeare Rage over agan Johnson Beverage sell to Retail store customers about 20 customers Last year Revenue was $12 million -Sell Sport Drinks (Exhibit 1 Customer Profitability) Superstore Odd Retail 12,000,000 10,480,000 $1,132,000 1,048,000 144000 $454,500 393,000 61,500 45,450 $9,063,980 7,886,200 1,177,780 906,398 271,382 3.0% Cest ef Goods Sold Gross Profit 8,000 120,000 116,800 1,048 16,720 12,152 ,568 120,000 Customer Profit Profit % 24,300 2.1% List price is $15.20 per case Cont in $13.10 per case Discounts vary by customer Exhibit 2 Customer information) Total Bl Superstore $ 14.50 Retail $ 15.15 Others $ 15.06 rywRy Odd Lot 1s.00 800,000 Price per Case Number of Number of Orders Number of Deliveries Miles per Delivery Expedited Deliveries Sales Visits x$ 14.90 $ 15.19 8,000 602,000 4,480 10 2,020 Customer 5aver Superstore is not happy-they think they are paying too much Customer Service Cost Detal Cost $ 672,000 of $1.2 million per year - like overhead See Table 1 Product Handling Taking Orders from Customers Delivering the Product Expediting Deliveries Sales visits rently allocated based on % of revenue They Run a report of Profitability by Cunstomer See Exhibit 1 198,000 $ 1,200,000 Can you help them using Activity Based costing? Treeare Rage over again