Question: Assume a companys activity - based costing system includes three activities with the following activity rates:Activity Cost PoolActivity RateTravel$ 2 per mile drivenDeliveries$ 5 0
Assume a companys activitybased costing system includes three activities with the following activity rates:Activity Cost PoolActivity RateTravel$ per mile drivenDeliveries$ per deliveryCustomer service$ per phone callTwo of the companys many customers include Customer A and Customer B These two customers consumed the companys activities as follows: Total Expected ActivityCustomer ACustomer BTravel number of miles drivenDeliveries number of deliveriesCustomer service number of phone callsIf the company earned $ in revenue serving Customer B then what is the customer margin for this customer?
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