Chapter 5 homwork @ Saved 10 points eBook & Him - Frint 0 References Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsy.com. Some of the items are manufactured by TCC, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, TCC incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Amount Cost Driver Sales commissions 811,500 Boxes of yarn sold to retail stores Pay-per-click/Search engine optimization 404,726 Number of online leads Cost of online sales 206,108 Skeins sold online Credit and collection $1,208 number of retail orders Total selling costs 5 1,513,520 The knitting yarn is sold to retail outlets in boxes, each containing 12 skeins of yarn. The sale of partial boxes is not permitted. Commissions are paid on sales to retail outlets but not on online sales. The cost of online sales includes technology infrastructure costs and the wages of personnel who process the online orders. Jackson believes that the selling costs vary significantly with the size of the order. Order sizes are divided into three categories as follows: Order size Online Sales Retail sales small 1to 18 skeins 1to 1@ boxes medium 11 to 20 skeins 11 to 20 boxss Large Over 28 skeins Ouer 20 boxes An analysis of the previous year's records produced the following statistics. Order Size Items small Medium Large Total Retail sales boxes (12 skeins per box) 2,500 72,000 196,000 278,509 Online sales, skeins 97,000 70,008 62,800 228,000 Number of retail orders 665 3,315 7,420 11,489 Number of online leads 128,858 268,225 116,825 585,988 Required: 1. Prepare a schedule showing TCC's total selling cost for each order size and the per-skein selling cost within each order size. Note: Round your intermediate calculations and unit cost per order to 2 decimal places. Sales commissions $ 7,500 216,000[ $ 588,000 $ 811,500 Pay-per-click/Search engine optimization 103,080 208,180 93,460 404720 Cost of online sales 87,300 63,000 55,800 206,100 Credit and collection Total cost for all orders of a given size 1,422,320 Units (skeins) sold Unit cost per order of a given size 2. An analysis of selling costs shows Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not available. Management may want o consider offering discounts for large orders. Small orders are preferable to medium sized orders. Large orders are preferable to medium sized orders. Marketing should be focused on small sized orders Prey 1of 2 Next > Help Save & Exit Submit Check my work