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Republic Industries decides to price delivery services according to the results of a recent activity - based costing ( ABC ) study. The study indicates

Republic Industries decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Republic should charge $8 per order, 2% of annual order value for general delivery costs, $1.25 per item, and $30 for delivery.
A year later, Republic collected the following information for two of its best customers:
\table[[Cost driver,Customer C,Customer D],[Number of orders,18,8],[Number of deliveries,10,10],[Total number of items,2,000,4,000],[Annual order value,$120,000,$80,000
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