Swiss Company produces precision components. Swiss has eleven customers, one of which accounts for 60 percent of the sales, with the remaining ten accounting for the rest of the sales. The ten smaller customers purchase components in roughly equal quantities. Orders placed by the smaller customers are about the same size. Data concerning Friendlys customer activity follow:

	Large Customer			Ten Small Customers
Units purchased		300,000			200,000
Orders placed		22			320
Number of sales calls		24			240
Manufacturing cost	$	900,000		$	600,000
Sales	$	1,800,000		$	1,200,000

Order-filling costs for Friendly Company total $300,000, and sales-force costs are $360,000.

Required:

Determine the cost of serving each of the two classes of customers (large and small). Allocate the order-filling and sales force costs to the customers using an activity-based costing approach.

What is the average cost of serving each of the small customers.