Question

Blue Vibrance Company sells a product used in many manufacturing processes. The sales activity involves three activity areas: Activity Area Cost Driver and Rate Order taking $100 per purchase order Sales visits $50 per visit Delivery vehicles $1 per delivery mile The following customer information is given: AX BY DZ Units sold 100,000 80,000 60,000 List price $50 $50 $50 Actual sales price $45 $48 $50 Number of purchase orders 30 20 10 Number of sales visits 6 5 3 Number of delivery miles 100 80 60 Which customer is most profitable?

Answer 1

Answer:

The answer and procedures of the exercise are attached in a microsof excel document.

Explanation:

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