Question: Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: IT distributors and non-IT distributors. The IT distributor places small, frequent orders,

Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors:IT distributors and non-IT distributors. The IT distributor places small, frequent orders,and the non- but tends to place large less frequent orders. Bothtypes of distributors are buying the same product. Stilwater Designs provides thefullwing information about customer eslated activities and costs far the most real

Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: IT distributors and non-IT distributors. The IT distributor places small, frequent orders, and the non- but tends to place large less frequent orders. Both types of distributors are buying the same product. Stilwater Designs provides the fullwing information about customer eslated activities and costs far the most real ter Sales orders 31T Distributors Non-IT Distributors 110 Sales calls Service calls Average order size 1,100 70 70 350 175 650 6,500 $125 $125 Manufacturing cost/unit Customer costs Processing sales orders $3,400,000 Selling goods 1,120,000 Servicing goods Total Required: 1,050,000 $5,650,000 1. Calculate the tatal revenues per distributor category and assign the catuner casts te each drar how by wing revente con a Seing a 20AWY

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