Question: QUESTION 15 Assume a company's activity based costing system includes three activities with the following activity rates! Activity Cost Pool Travel Deliveres Customer service Activity
QUESTION 15 Assume a company's activity based costing system includes three activities with the following activity rates! Activity Cost Pool Travel Deliveres Customer service Activity Rate $ 2 per mile driven $50 per delivery $22 por phone call Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Total Expected Activity Customer Customer Travel (number of miles driven) 300 250 Deliveries (number of delivenes) 15 5 Customer service number of phone calls) 20 12 If the company earned $1.260 in revenue serving Customer B, then what is the customer margin for this customer? $240 $280 $220 $200 QUESTION 16
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