RUSH

Answer choices:

$60.00

$37.50

$100.00

$18.75

Arctic Air manufactures cooling units for commercial buildings. For each unit, the price and cost of goods sold are: Price $100,000 per unit Cost of goods sold 70,000 per unit Gross profit $ 30,000 per unit In addition, the company incurs selling and administrative expenses of $200,000 relating to two non-manufacturing activities: customer servic and project bidding. The cost pools for these activities are: Activity Project bidding Total Customer service Number of requests Activity base Number of bids Cost pool $ 120,000 $ 80,000 $ 200,000 Arctic Air has two major customers, Senate Housing and Lowbro University. The activity-base usage by customer for the number of units specified is: Units Number of requests Number of bids Senate Housing 10 2,000 11 Lowbro University 5 1,200 4. Total 15 3,200 15 What is the activity rate for customer service