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Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to

Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are as follows:

Activity JIT distributors Non-JIT distributors
Sales Orders 500 30
Sales Calls 30 30
Service Calls 200 90
Average Order Size 90 1,400
Manufacturing Cost/Unit $50 $50
Customer Costs:
Processing Sales Orders $160,000
Selling Goods $155,000
Servicing Goods $195,000
Total $500,000

Calculate the total customer cost for the JIT distributors. (Note: Round the activity rates and activity costs to the nearest dollar.)

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