Question
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
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:
ActivityCost Driver and RateSales calls$400per visitOrder processing$100per orderDeliveries$50per order + $0.50 per mileSales returns$60per return and $3 restocking per unit returned
Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers:
XBTNINTONumber of orders102Number of parts per order5002,000Sales returns:Number of returns410Number of units returned4050Number of sales calls610Miles per delivery1020Shipping termsFOB, FactoryFOB, Destination
What is Nerrod's total customer-sustaining cost applicable to Ninto?
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