Exercise 7-14 Activity-Based Customer-Driven Costs Suppose that Lone Star Designs has two classes of distributors: class A distributors OBJECTIVE 2 and class B distributors. The class A distributor places small, frequent orders, and the class B distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Lone Star provides the following information about customer-related activities and costs for the most recent quarter: Sales orders Sales calls Service calls Average order size Manufacturing cost/unit Customer costs: Processing sales orders Selling goods Serueing goods Total Class A Distributors 1,000 IOO 2.500 $100 1,500.000 Class B Distributors 100 100 250 25,000 $100