nerrod Company sells its products at $840 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 Rate
Sales calls	$	570	per visit
Order processing	$	185	per order
Deliveries	$	80	per order + $0.50 per mile
Sales returns	$	95	per return and $3.0 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 orders	27		2
Number of parts per order	670		2,170
Sales returns:
Number of returns	4		10
Number of units returned	40		50
Number of sales calls	14		10
Miles per delivery	10		20
Shipping terms	FOB, Factory		FOB, Destination

What is Nerrod's total customer-sustaining cost applicable to Ninto?

Multiple Choice

• $570.

• $770.

• $5,700.

• $8,000.

• $8,120.