Activity based pricing marks up the direct cost of goods

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Reference no: EM131078101

A company using activity based pricing marks up the direct cost of goods by 0.24 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $7.20 per order placed; $2.00 per separate item ordered; $28.60 per return. A customer places 5 orders with a total direct cost of $2,900, orders 289 separate items, and makes 5 returns. What will the customer be charged?

Reference no: EM131078101

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