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Nerrod Company sells its products at $540 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the
Nerrod Company sells its products at $540 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 $420 per visit $ 110 per order $ 60 per order + $0.50 per mile $ 70 per return and $3.4 restocking per unit returned Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers: Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers: XBT NINTO Number of orders 12 2 Number of parts per order 520 2,020 Sales returns: Number of returns Number of units returned Number of sales calls Miles per delivery Shipping terms 4 10 40 50 8 6 10 20 FOB, Factory FOB, Destination What is Nerrod's total customer unit-level cost applicable to XBT as a customer? $60. $544. $4,150. $4,155. $6,364.
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