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 productcosting 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 $ 945,999 Boxes of yarn sold to retail stores Catalogs 396,429 Catalogs distributed Cost of catalog sales 139,299 Skeins sold through catalog Credit and collection 91,899 Number of retail orders Total selling costs $1,557J429 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 significantly with the size of the order. Order sizes are divided into three categories as follows: Order Size Catalog Sales Retail Sales Small 116 skeins 116 boxes Medium 11729 skeins 11729 boxes Large Over 28 skeins Over 26 boxes An analysis ofthe previous year's records produced the following statistics. An analysis of the previous year's records produced the following statistics. Order Size Small Medium Large Total Retail sales in boxes (12 skeins per box) 4,599 66,933 192,999 262, 533 Catalog sales in skeins 93,999 66,333 58,999 217,933 Number of retail orders 625 3,115 6,468 19,293 Catalogs distributed 315,159 333,339 132,369 789,843 Required: 1. Prepare a schedule showing Redwood Company's total selling cost for each order size and the pereskein selling cost within each order size. (Round your intermediate calculations and unit cost per order to 2 decimal places.) Sales commissions Catalogs Cost of catalog sales Credit and collection Total cost for all orders of a given Size Units (skeins) sold Unit cost per order of a given size 2. Ar] analysis of selling costs shows: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) a Managememt may want to consider offering discounts for large orders, a Small orders are preferable to medium sized orders, a Large orders are preferable to medium sized orders, a Marketing should be focused on small Sized orders