Before he leff for the

Thomas decided to pull together some information about

the customer service costs te had described in the meeting: handling the product, taking the orders, delivering the produch expediting rush orders, and visiting the customer. He searched through the accountigg systely and determined how much of the annual $$1\mathrm{.}2$ million in customer scrvice costs

as arsociated witurach of those caregories $($Table $1).$

Kable Customer service costs during the prior year by area of activity.

Area of activity

Total S

Total

Find text or tools Q

Product handling

$

Taking order from customers

$672\mathrm{.}000$

$100,000$

Delivering the product

Expediting deliveries $($other than automobile$)$

$140\mathrm{.}000$

Sales visits to customers

$198,000$

$90\mathrm{.}000$

$21\mathrm{.}200\mathrm{.}000$