Question: 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,

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,

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: Non-JIT Sales orders Sales calls Service calls Average order size JIT Distributors Distributors 800 80 70 70 350 175 550 5,500 $125 $125 Manufacturing cost/unit Customer costs: Processing sales orders $3,480,000 Selling goods 1,120,000 1,050,000 $5,650,000 Servicing goods Total Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar.. Sales (in units) JIT 440,000 Check My Work 9 more Check My Work uses remaining Non-JIT 440,000 Previous Next>

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