Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Amount Cost Driver Sales commissions $ 945,000 Boxes of yarn sold to retail stores Catalogs 398,420 Catalogs distributed Cost of catalog sales 138,200 Skeins sold through catalog Credit and collection 91.330 Number of retail orders Total selling costs $1.55L429 The knitting yarn is sold to retail outlets in boxes. each containing 12 skeins of yarn. The sale of partial boxes is not permitted. Commissions are paid on sales to retail outlets but not on catalog sales. The cost of catalog sales includes telephone costs and the wages of personnel who take the catalog orders. Jackson believes that the selling costs vary signicantly with the size of the order. Order sizes are divided into three categories as follows: Order Size Catalog Sales Retail Sales Small 1-10 skeins 1-18 boxes Medium 11-20 skeins 11-28 boxes Large Over 20 skeins Over 28 boxes An analysis of the previous year's records produced the following statistics. Order Size Srlall Medium Large Total Retail sales in boxes (12 skeins per box} 11,500 66,0I0 192,0I0 262,5II Catalog sales in skeins 93,000 66,080 58,080 21?,0I8 Number of retail orders 625 3,115 6,450 10,2I8 Catalogs distributed 315,150 333,330 132,360 780,848 Required: 1. Prepare a schedule showing Redwood Company's total selling cost for each order size and the per-skein selling cost within each order size. (Rou rid your intermediate calculations and unit cost per order to 2 decimal places.) Sales commissions Catalogs Costof catalog sales Credit and collection Total cost for all orders of a given size :3 D $ 0 $ 0 $ Units {skeins} sold Unit cost per order of a given size