Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stoner Excursions offers several services to customers. Susan Stoner realizes that some customers use more services than others, so the company has conducted a customer

image text in transcribedimage text in transcribedimage text in transcribed

Stoner Excursions offers several services to customers. Susan Stoner realizes that some customers use more services than others, so the company has conducted a customer profitability analysis that identified the following cost pools and activity drivers: Cost Pool Online reservations Phone reservations Ticket mailings Courier deliveries Annual Cost $198,000 1,472,000 520,000 156,000 $2,346,000 Annual Driver Activity 33,000 online reservations 92,000 phone reservations 130,000 mailings 13,000 deliveries Your answer is correct. Calculate the activity rate for each cost pool. Cost Pool Activity Rate Online reservations $ 6 per online reservation Phone reservations $ 16 per phone reservation Ticket mailings $ per mailing Courier deliveries $ 12 per delivery Two of Stoner's customers have the following activity levels. Customer A $184,500 $129,375 400 Ticket purchases Ticket cost Online reservations Phone reservations Ticket mailings Courier deliveries Customer B $184,500 $135,000 o 500 0 400 150 0 450 Calculate the customer net profit and customer profit margin for each customer: (Round customer profit margin to 1 decimal place, e.g. 15.2%.) Customer net profit Customer profit margin Customer A $ $ % Customer B $ %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Objective Questions And Explanations

Authors: Irvin N. Gleim

6th Edition

0917537718, 978-0917537714

More Books

Students also viewed these Accounting questions

Question

The models used to analyse different national cultures.

Answered: 1 week ago

Question

The nature of the issues associated with expatriate employment.

Answered: 1 week ago