Steller Manufacturing 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 purchase the same product. The customer activities and costs for the previous quarter are found below:

Activity	JIT	Non-JIT
Sales Orders	400	25	425
Sales Calls	20	20	40
Service Calls	180	80	160
Average order size	75	1200
Manufacturing cost/unit	$40	$40
Customer Costs
Processing sales orders	$150,000
Selling Goods	$145,000
Servicing goods	$185,000
Total	$485,000

1) Calculate the activity rate for processing sales orders

a. $330.09 per order

b. $525 per order

c. $275.76 per order

d. $352.94 per order

e. $342.43 per order

2) Calculate the activity rate for selling goods

a. $3625 per sales call

b. $3550 per sales call

c. $2200 per sales call

d. $4800 per sales call

e. $9400 per sales call

3) Calculate the activity rate for servicing goods

a. $1089.00 per service call

b. $750.10 per service call

c. $675.50 per service call

d. $1,000.00 per service call

e. $711.54 per service call

4) Calculate the total customer cost for the JIT distributor

a. $487500

b. $341753

c. $600000

d. $250050

e. $448791

5) Calculate the total customer cost for the non-JT distributor

a. $150025

b. $122500

c. $175200

d. $138247

e. $178791

Answer rating: 100% (QA)

Answer The correct answer is as follows Part 1 Activity rate for proc... View the full answer