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Smith Company sells its products at $540 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the
Smith Company sells its products at $540 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Cost Driver and Rate Sales calls $ 420 per visit Order processing $ 110 per order Deliveries Sales returns $60 per order + $0.50 per mile $ 70 per return and $3 restocking per unit returned Smith Company has gathered the following data pertaining to activities it performed for two of its customers: Number of orders: Number of parts per order Sales returns: Number of returns Number of units returned (per return) Number of sales calls Miles per delivery Shipping terms What is Smiths total customer-sustaining cost applicable to Ninto? Multiple Choice $420 XBT 12 520 NINTO 2 2,020 4 10 40 50 8 6 10 20 FOB, Factory FOB, Destination. < Prev 5 of 18 Next >
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