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Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base.

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Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price one unit is $150. Round calculations to the nearest dollar. JIT Non-JIT Sales (in units) 765,000 114,750,000 2,700,000 765,000 $ 114,750,000 Sales Allocation $ 2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost assignments, Round the interim calculations to the nearest dollar. JIT Non-JIT $ X 5 293,636 X 2,936,364 560,000 $ $ 560,000 Ordering costs Selling costs Service costs Total 700,000 $ 350,000 For non JIT distributors by how much can the price be decreased without affecting customer profitability? Round your answer to the nearest cent. s per unit Suppose that Stilwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The IT distributor places small, frequent orders, and the non distributor tends to place larger, less 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 Distributors Non-JIT Distributors Sales orders Sales calls 70 Service calls 350 175 Average order size 850 $125 8,500 $125 Manufacturing cost/unit Customer costs: Processing sales orders $3,230,000 1,120,000 Selling goods Servicing goods 1,050,000 Total $5,400,000

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