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What is nerrod total customer batch-level cost applicable

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Question - Nerrod Company sells its products at $780 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Cost Driver and Rate Sales calls $ 540 per visit Order processing $ 170 per order Deliveries $ 65 per order + $0.50 per mile Sales returns $ 80 per return and $3.00 restocking per unit returned Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers:

XBT NINTO

Number of orders 24 2

Number of parts per order 640 2,140

Sales returns: Number of returns 4 10

Number of units returned 40 50

Number of sales calls 11 7

Miles per delivery 10 20

Shipping terms FOB, Factory FOB, Destination

Required - What is Nerrod's total customer batch-level cost applicable to Ninto?

Reference no: EM133046723

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