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Please assist. It is only 3 questions and I have already provided the answers according to the homework. I need help with the step by
Please assist. It is only 3 questions and I have already provided the answers according to the homework. I need help with the step by step from the beginning on how to get the right answer.
HW 13 1. Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below: Cost Pool Annual Cost Cost Driver Annual Driver Quantity Processing electronic orders $1,000,000 Number of orders 500,000 Processing non-electronic orders $2,000,000 Number of orders 400,000 Picking orders $3,000,000 Number of different products ordered 800,000 Packaging orders $1,500,000 Number of items ordered 50,000,000 Returns $2,000,000 Number of returns 50,000 *The answer is 0.19. Please break down step by step all calculations from the very beginning. 2. Costa Company has a capacity of 40,000 units per year and is currently selling 35,000 for $400 each. Barton Company has approached Costa about buying 2,000 units for only $300 each. The units would be packaged in bulk, saving Costa $20 per unit when compared to the normal packaging cost. Normally, Costa has a variable cost of $280 per unit. The annual fixed cost of $2,000,000 would be unaffected by the special order. What would be the impact on profits if Costa were to accept this special order? *The answer is profits would increase 80,000. Please break down step by step all calculations from the very beginning. 3. A law firm uses activity-based pricing. The company's activity pools are as follows: Cost Pool Annual Estimated Cost Cost Driver Consultation 187,000 Number of consultations Administrative Costs 147,000 Admin labor hours Client Service 92,000 Number of clients Annual Driver Quantity 100 9,900 110 consultations labor hours clients The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer? *The answer is 6, 506.67. Please break down step by step all calculations from the very beginning. HW 13Step by Step Solution
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