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Question - Nerrod Company sells its products at $740 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 $520 per visit
Order processing $160 per order
Deliveries $55 per order + $0.50 per mile
Sales returns $70 per return and $5.4 restocking per unit returned
Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers:
XBTNINTO Number of orders22 2 Number of parts per order620 2,120 Sales returns: Number of returns4 10 Number of units returned40 50 Number of sales calls9 5 Miles per delivery10 20 Shipping terms FOB, Factory FOB, Destination
Required - What is Nerrod's total customer unit-level cost applicable to XBT as a customer?
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