QUESTION 5

1. Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are as follows:

   Activity	JIT distributors	Non-JIT distributors
   Sales Orders	500	30
   Sales Calls	30	30
   Service Calls	200	90
   Average Order Size	90	1,400
   Manufacturing Cost/Unit	$50	$50
   Customer Costs:
   Processing Sales Orders	$160,000
   Selling Goods	$155,000
   Servicing Goods	$195,000
   Total	$500,000

   Calculate the activity rate for selling goods. (Note: Round answer to two decimal places.)

   	a.	$2,200.50 per sales call
   	b.	$4,800.40 per sales call
   	c.	$2,583.33 per sales call
   	d.	$3,550.66 per sales call
   	e.	$9,400.60 per sales call