Question
Nerrod Company sells its products at $620 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 $620 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Cost Driver and RateSales calls$460per visitOrder processing$130per orderDeliveries$80per order + $0.50 per mileSales returns$90per return and $3.00 restocking per unit returned Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers: XBT NINTO Number of orders16 2 Number of parts per order560 2,060 Sales returns: Number of returns4 10 Number of units returned40 50 Number of sales calls12 10 Miles per delivery10 20 Shipping termsFOB, FactoryFOB, Destination What is Nerrod's total customer batch-level cost applicable to Ninto?
Multiple Choice
$1,340.
$1,280.
$2,660.
$2,780.
$6,660.
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