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Paint Company has two customers Commercial and Consumer with data as follows Commercial Consumer Selling Price per unit $15 $15 Units Sold 5,000 8,000 Manufacturing
Paint Company has two customers Commercial and Consumer with data as follows Commercial Consumer Selling Price per unit $15 $15 Units Sold 5,000 8,000 Manufacturing Cost per unit $8.25 $8.25 Number of Purchase Orders 76 212 Number of Deliveries 104 287 Number of Expedited deliveries 357 589 Customer Visits 58 75 Paint Company's management accountant has gathered the following ABC rate information: ABC Cost Rate Purchase Orders $72 per purchase order Deliveries $ 43 per delivery Expedited Deliveries $ 18 per expedited delivery Customer Visits $ 56 per customer visit Using the information in the tables above and allocating indirect support costs using ABC to customers, what is the Operating Income for the Commercial customer
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