XYZ Company uses activity-based pricing. The company prices their products by charging customers the direct cost by

Question:

XYZ Company uses activity-based pricing. The company prices their products by charging customers the direct cost by using a markup of 35% on the direct cost plus adding service cost that are provided. The service costs are $7.50 per order, $3.00 for each product ordered, and a $2.00 per pound shipping charge.
Ben Corporation made ordered from XYX 12 orders for goods with a total direct cost of $6,000. Wilson ordered 40 different products that weighed a total of 600 lbs. What price did Ben Corporation pay?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Management Accounting Information for Decision-Making and Strategy Execution

ISBN: 978-0137024971

6th Edition

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

Question Posted: