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Nerrod Company sells its products at $500 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following

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Nerrod Company sells its products at $500 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs Sales calls Order processing Deliveries Salea returns s 400 per visit s 100 per order s 50 per order + $0.50 per mile $ 60 per return and $3 restocking per unit returned Nerrod Company hes gathered the following data pertaining to activities it performed for two of its customers 10 500 Number of orders Number of parts per order Sales returns 2, 000 10 50 10 20 Number of returns 40 Number of units returned Number of sales calls Miles per delivery Shipping terms 10 FOB, FactoryFOB, Deatination What is Nerrod's total customer-sustaining cost applicable to Ninto? Multiple Cholce o$400 $6,420 $4,000 o $600. $6.300

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