Business, 15.02.2021 20:10, cynthiauzoma367

Nerrod Company sells its products at $900 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 $ 600 per visit
Order processing $ 200 per order
Deliveries $ 95 per order $0.50 per mile
Sales returns $ 110 per return and $3.0 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 30 2
Number of parts per order 700 2,200
Sales returns:
Number of returns 4 10
Number of units returned 40 50
Number of sales calls 17 13
Miles per delivery 10 20
Shipping terms FOB, Factory FOB, Destination
What is Nerrod's total sales-sustaining cost applicable to XBT as a customer?

Answers: 2

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Nerrod Company sells its products at $900 per unit, net 30. The firm's gross margin ratio is 40 perc...