All Texts and Stationery Ltd (ATS) is a major provider of texts and stationery to secondary schools throughout South Australia. Students submit their order to MS through their school at the beginning °f the year. All Texts and Stationery fills the order in three stages:
(a) An order is received from the school and entered into the ATS inventory order system.
(b) The books and stationery required to fill the order are taken from inventory, packed and dispatched to the student.
(c) Payment is received from the student and processed.
The costs of these three processes in the year just ended are listed below:

During the year, ATS processed 22,000 student orders.
Required:
1. Calculate the cost per order for each process.
2. Calculate the total cost per order.
3. Does the total cost per order provide a reliable estimate of the costs incurred to process each order? Explain your answer.

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Receipt of payment $ 60 000 240 000 Pack and despatch order $125 000 145 000 55 000 3 000 2 000 155 000 35 000 Receipt of order $50 000 420 000 80 000 4 000 7 500 Cost Staff salaries Equipment depreciation Equipment insurance Telephone Data processing Postage Consumables 80 000 2 000 12 000 3 000 2 000