Cornerstone Exercise $7-5$ Activity$-$Based Customer Costing

Underwood Company produces sofas for $20$ retail outlets. Of the $20$ retail outlets, $19$ are small, independently owned furniture stores and one is a retail chain. The retail chain buys $60$ percent of the sofas produced. The $19$ smaller customers purchase sofas in approximately equal quantities, where the orders are about the same size. Data concerning Underwood's customer activity are as follows:

$\backslash$table$[[,$Large Retailer,Smaller Retailers$],[$Units purchased,$60,000,40,000],[$Orders placed,$20,2,000],[$Number of sales calls,$10,490],[$Manufacturing costs,$$36,000,000,$$$24,000,000$