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klio [65]
3 years ago
8

Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places s

mall, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders.
Both types of distributors purchase the same product.

The customer activities and costs for the previous quarter are as follows:Activity JIT distributors Non-JIT distributorsSales Orders 500 30Sales Calls 30 30Service Calls 200 90Average Order Size 90 1,400Manufacturing Cost/Unit $50 $50Customer Costs:Processing Sales Orders $160,000Selling Goods $155,000Servicing Goods $195,000Total $500,000Calculate the activity rate for servicing goods. (Note: Round answer to two decimal places.)
a. $1,000.54 per service callb. $680.50 per service callc. $750.10 per service calld. $672.41 per service calle. $1,089.25 per service call
Business
1 answer:
yulyashka [42]3 years ago
6 0

Answer:

d. $672.41 per service call

Explanation:

The computation of the activity rate for servicing goods is shown below:

= (Total servicing good cost) ÷ (Total service calls)

= $195,000 ÷ 290

= $672.41 per service call

The total service call would be

= JIT distributors + Non-JIT distributors

= 200 + 90

= 290

All other information which is given is not relevant. Hence, ignored it

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Because Cocal-cola is an older, more experience and more global company, it is more likely to have more efficient reimbursement systems. If these are inculcated into the Honest Tea process, with adequate training on how to use it, it will also serve to ensure homogeneity of systems and operations which is critical to the success of an acquisition.

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