Office Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results follow: Cost Pool-Processing electronic ordersAnnual Cost-$1,000,000; Cost Driver--# of ordersAnnual Driver Quantity-500,000; : : Cost Pool-Processing non-electronic ordersAnnual Cost-$2,000,000; Cost Driver--# of ordersAnnual Driver Quantity-400,000; : Cost Pool-Picking ordersAnnual Cost-$3,000,000; Cost Driver--# of different products orderedAnnual Driver Quantity-1,000,000; : Cost Pool-Packaging ordersAnnual Cost-$1,500,000; Cost Driver--# of items orderedAnnual Driver Quantity-50,000,000; : Cost Pool-ReturnsAnnual Cost-$3,000,000; Cost Driver--# of returnsAnnual Driver Quantity-50,000. One customer orders $20,000,000 worth of product each year by making 50 electronic orders. The direct cost of these orders is $16,000,000. The customer orders an average of 20 separate items on each order (1,000 items for the year) and has ordered a total of 5,000,000 items during the year, and returns nothing. Using an activity based method, what are the indirect costs associated with serving this customer?

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Im sorry its not actually homework since were not assigned homework to turn in I just recopied these questions because they are questions I came across in my book that I couldn't answer.

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