Casey Corporation provides you with the following data:

Casey further informs you that their ABC system has identified three primary cost pools - (1) the volume of sales; (2) the number of orders, and (3) the number of deliveries --- as the cost drivers when allocating indirect costs to determine customer profitability.
Required:
Calculate the profit earned from Ryan Construction and from Wilson Builders.

Transcribed Image Text:

Ryan Construction Wln Builders Cost per activity unit $400,000 Sales Contribution margin ratio 30% Volume-related costs Number of orders Number of deliveries 150 $400,000 25% 20 40 $0.27 per sales $ $450 per order $100 per delivery 50