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Nerrod Company sells its products at $860 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 $860 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs:
I have seen this problem solved already and rated with 2 thumbs up. Their answer is 1,380, but it is not one of the choices.
Nerrod Company sells its products at $860 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 $580 per visit $190 per order $ 85 per order + $0.50 per mile Sales calls Order processing Deliveries Sales returns $100 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: NINTO Number of orders 28 2 Number of parts per order Sales returns 680 2,180 Number of returns 10 Number of units returned 40 50 Number of sales calls 15 11 Miles per delivery 10 20 Shipping terms FOB, Destination FO, Factory What is Nerrod's total customer batch-level cost applicable to Ninto? Multiple Choice $3,000 $1,500 $1,570 $2,880 $6,880Step by Step Solution
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