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TB MC Qu. 5-123 Nerrod Company sells its products... Nerrod Company sells its products at $580 per unit, net 30. The firm's gross margin ratio
TB MC Qu. 5-123 Nerrod Company sells its products... Nerrod Company sells its products at $580 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Sales calls Order processing Deliveries Sales returns Cost Driver and Rate $ 440 per visit $120 per order $ 70 per order + $0.50 per mile $ 80 per return and $3.0 restocking per unit returned Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers: XBT 14 NINTO 2 2,040 540 4 Number of orders Number of parts per order Sales returns: Number of returns Number of units returned Number of sales calls Miles per delivery Shipping terms 40 10 10 FOB, Factory 10 50 8 20 FOB, Destination What is Nerrod's total customer-sustaining cost applicable to Ninto
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