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Week 5 - Chapter 5 Practice H... i Saved Help Save & Exit Submit Check my work 10 Colleen Company has gathered the following data
Week 5 - Chapter 5 Practice H... i Saved Help Save & Exit Submit Check my work 10 Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. 0.5 Jerry, Inc. Kate Co. points Number of orders 6 30 Units per order 1, 000 420 Sales returns: Number of returns 4 5 eBook Total units returned 50 140 Number of sales calls 13 5 Print References Colleen sells its products at $290 per unit. The firm's gross margin ratio is 20%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Cost Driver and Rate Sales calls $ 800 per visit Order processing 180 per order Deliveries 410 per order Sales returns 270 per return and $3 per unit returned Sales salary 107,000 per month Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Inc. and Kate Co. 2. Compare the profitability of these two customers. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using customers as the cost objects, classify the activity costs into cost categories (unit- the total cost for Colleen Company to service Jerry, Inc. and Kate Co. Jerry Inc. Kate Co. Customer unit level costs: $ 150 $ 420 aw J K Enter
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