Stage 2 ABC for a Wholesale Company

Information is presented for the activity costs of Brighton Wholesale Company:

ActivityCost per Unit of Activity DriverCustomer relations$84.00 per customer per monthSelling0.11 per sales dollarAccounting9.00 per orderWarehousing0.70 per unit shippedPacking0.45 per unit shippedShipping0.50 per pound shipped

The following information pertains to Brighton Wholesale Company's activities in Colorado for the month of June 2017:

Number of orders320Sales revenue$228,000Cost of goods sold$102,600Number of customers40Units shipped5,400Pounds shipped81,000

Required

Determine the profitability of sales in Colorado for June 2017.

Do not usea negative sign with your answers.

Profitability of Sales in ColoradoMarch 2017Sales revenueLess:Cost of goods soldCustomer relationsSelling expensesAccountingWarehousingPackingShippingProfitability of sales

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