Question 2 (40%) Isotropic AS is using an Activity Based Costing model to analyze their various sales and marketing costs. The forecasted costs for sales and marketing in 2021 can be split as follows: Activities in the Sales and Marketing Dept. Fixed activity costs 1 800 000 Cost drivers Available capacity No. of customer 900 meetings meetings/year No. of support 1 800 hours support hours/year No. of customer 600 complaints complaints/year Customer meetings Customer support on phone, mail, and chat Handling complaints and returns Other costs for sales and marketing Total sales and marketing costs Budgeted capacity utilization 690 meetings/year 1 350 support hours/year 450 complaints/year 1 200 000 900 000 2 100 000 Not available 6 000 000 The company sells its products through three retailing chains in Norway and we can gather the following information about the activities pertaining to these: Retailer no. 1 Retailer no. 2 Retailer no. 3 Total Sold number of units 30 000 units 18 000 units 16 000 units 64 000 units 330 meetings 270 meetings 90 meetings 690 meetings Customer meetings Customer support on phone, mail, and chat Handling complaints and returns 750 hours 450 hours 150 hours 1 350 hours 240 complaints 180 complaints 30 complaints 450 complaints Isotropic AS purchases the products from the manufacturer in China for an average purchase price of kr 250.00 per unit (ex VAT) and resell these to the three retailers with an average profit margin of 60.00%. The sales representatives are paid 5% bonus on the sales order values. Question 2a (20%) Calculate the costs of excess capacity in the Sales and Marketing Department in 2021. Question 2b (20%) Analyze the profitability of the three retailing chains using the information you have available. Question 2 (40%) Isotropic AS is using an Activity Based Costing model to analyze their various sales and marketing costs. The forecasted costs for sales and marketing in 2021 can be split as follows: Activities in the Sales and Marketing Dept. Fixed activity costs 1 800 000 Cost drivers Available capacity No. of customer 900 meetings meetings/year No. of support 1 800 hours support hours/year No. of customer 600 complaints complaints/year Customer meetings Customer support on phone, mail, and chat Handling complaints and returns Other costs for sales and marketing Total sales and marketing costs Budgeted capacity utilization 690 meetings/year 1 350 support hours/year 450 complaints/year 1 200 000 900 000 2 100 000 Not available 6 000 000 The company sells its products through three retailing chains in Norway and we can gather the following information about the activities pertaining to these: Retailer no. 1 Retailer no. 2 Retailer no. 3 Total Sold number of units 30 000 units 18 000 units 16 000 units 64 000 units 330 meetings 270 meetings 90 meetings 690 meetings Customer meetings Customer support on phone, mail, and chat Handling complaints and returns 750 hours 450 hours 150 hours 1 350 hours 240 complaints 180 complaints 30 complaints 450 complaints Isotropic AS purchases the products from the manufacturer in China for an average purchase price of kr 250.00 per unit (ex VAT) and resell these to the three retailers with an average profit margin of 60.00%. The sales representatives are paid 5% bonus on the sales order values. Question 2a (20%) Calculate the costs of excess capacity in the Sales and Marketing Department in 2021. Question 2b (20%) Analyze the profitability of the three retailing chains using the information you have available