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Please can you explain how to find the missing numbers? Activity the CustomerDriven Costs Suppose that Stillwater Design has two cases of distributors: IT distributors
Please can you explain how to find the missing numbers?
Activity the CustomerDriven Costs Suppose that Stillwater Design has two cases of distributors: IT distributors and non-IT distributors. The IT distributor places small, frequent orders, and the non si distributor tends to place larger le frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the Following information about customer related activities and costs for the most recent quarter JIT Non-IT Distributors Distributors 1.100 110 Sales orders Sales Cote 20 20 Service calls 350 175 650 6,500 5125 $125 Average order Manufacturing court Customer cost Processing sales ordens Selling goods $3,400.000 1.120,000 Services poods 1,050,000 $5,650,000 Tota Required 1. Calculate the total revues per distributor category, and assign the customer costs to each distributor type by using revenues as the location base Seing price for chenis 150. Round calculations to the nearest dollar UIT Non-IT 715.000 715.000 Sales 107,250,000 107,250,000 Action 2,525.000 2,825.000 2. Cal Canin Cate the customer cost per strategy based content on the nearest dosar IT Non-IT Ong 2,153,636 x 318,364 X Sego 560.000 S60,000 Sec 700.000 350,000 4,423,635 X For Two youth can the price bedes without wing around to the 700,000 X 3. that meer te bente De Nobel customers and were the supply of ads on it. The same time to lys Demanagement It seems to meet the Total 4,423,636 X For non IT distributors by how much can the price be decreased without affecting customer profitability? Round your answer to the nearest cent 700,000 X per unit 3. Assume that the JT distributors are simply imposing the frequent orders on Stilwater Designs. No formal discussion has taken place between a customers and Stilwater Designs regarding the supply of goods an a JIT basis. The sales pattern has evolved over time. As an independent constant, what would you suggest to Stillwater Designs' management? It sounds like the IT buyers are switching their inventory carrying costs to Stillwater Designs without any significant benefit to water Design Seat Designs needs to increase prices to reflect the additional demands on customer support activities. Furthermore, additional price increases may be needed to reflect the increased number of setups, purchases, and so on, that are likely occurring inside the plant Stillwater Designs should also immediately initiate discussions with its IT customers to begin negotiations for achieving some of the benefits that a supplier should have, such as long-term - contracts. The benefits of long-term contracting may offset most or all of the increased cout from the additional demands made on other activities Step by Step Solution
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