Antelope Manufacturing makes a component called P30. This component is manufactured only when ordered by a customer, so Antelope keeps no inventory of P30. The list price is $115 per unit, but customers who place "large" orders receive a 12% discount on price. The customers are manufacturing firms. Currently, the salespeople decide whether an order is large enough to qualify for the discount. When the product is finished, it is packed in cases of 10. If the component needs to be exchanged or repaired, customers can come back within 10 days for free exchange or repair.

The full cost of manufacturing a unit of A1030 is $ 95. In addition, Antelope incurs customer- level costs.

Customer- level cost- driver rates are:

Order taking	$360 per order
Product handling	$15 per case
Rush order processing	$560 per rush order
Exchange and repair costs	$50 per unit

Information about Antelope's five biggest customers follows:

Number of units purchased 5,400 1,800 1,200 4,400 8,100 Discounts given 12% 12% 12% 12% (half units) Number of orders 16 16 Number of cases 540 180 810 Number of rush orders (free) 1 Number of units 1 exchanged/repaired