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Nerrod Company sells its products at $680 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 $680 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 $ 490 per visit $145 per order $ 95 per order + $0.50 per mile $105 per 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 19 NINTO 2 2,090 590 4 10 Number of orders Number of parts per order Sales returns: Number of returns Number of units returned Number of sales calls Miles per delivery Shipping terms 40 6 50 13 20 FOB, Destination 10 FOB, Factory What is Nerrod's total customer batch-level cost applicable to Ninto
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