Question: APL Internet Services has analyzed its customer and order handling data for the past year and has determined the following cost Order processing cost per

APL Internet Services has analyzed its customer and order handling data for the past year and has determined the following cost
Order processing cost per order $ 4
Customer tech support calls (per call)7
Additional costs if tech support is after hours 12
Relationship management costs (per customer per year) $950
In addition to these costs, product costs amount to 80% of sales. In the prior year, APL had the following experience with Tapper Recreation, one of its customers:
Sales $9,400
Number of orders 42
Calls to tech support 62
Percent of tech support calls after hours 40%
For the coming year, APL has told Tapper Recreation that it will be switched to an activity-based pricing system. In addition to regular prices, Tapper will be required to pay:
Order processing (per order) $ 7
Customer tech support calls (per call)15
Additional costs if a tech support call is after hours 28
Calculate the total revenue to be billed to Tapper Recreation if activity is the same as in the prior year. Show all calculations.

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