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Yellow Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Yellow should charge $13 per order, 6% of the order's value for general delivery costs, $5.00 per item, and $35 for delivery. A year later, Yellow collected the following information for two of its best customers:
Cost Driver
Customer C
Customer D
Number of orders
23
13
Number of deliveries
15
Number of items
2,300
4,300
Order value
$150,000
$110,000
What are the total delivery costs charged to Customer D during the year?
The price quoted to the customer is closely tied to the estimated cost in environments in which products are made according to the customer's specifications.
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case study questionread headline health rates as top social issue. would you expect management to worry about
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