Activity$-$Based Customer$-$Driven Costs

Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non$-$JIT distributors. The JIT distributor places small, frequent orders, and the non$-$JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer$-$related activities and costs for the most recent quarter:

$\backslash$table$[[,\backslash$table$[[$JIT$],[$Distributors$]],\backslash$table$[[$Non$-$JIT$],[$Distributors$]]],[$Sales orders,$1,000,100],[$Sales calls,$70,70],[$Service calls,$350,175],[$Average order size,$750,7,500],[$Manufacturing cost$/$unit$,$$$125,$$$125$