Stinler Corporation manufactures curtains for retail stores and for individual customers. The retail chain buys 70% of
Question:
Stinler Corporation manufactures curtains for retail stores and for individual customers. The retail chain buys 70% of the curtains produced. The individual customers purchase curtains in approximately equal quantities, where
the orders are about the same size. Data concerning Stinler's customer activity are as follow
Retail Stores
Individual Customers
Units purchased
56,000
24,000
Orders placed
8
492
Number of sales calls
4
156
Manufacturing costs
8,000,000
3,500,000
Order filling costs allocated
375,000
225,000
Sales force costs allocated
265,000
135,000
Currently customer-driven costs are assigned to customers based on units sold, a unit-level driver.
Required:
A. Assign costs to customers by using an ABC approach.
B. Determine cost per unit sold for each type of customer.
Expert Answer:
Manufacturing costs These are already given separately for retail stores and individual customers Or... View the full answer
