[rrusche]

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?

[ScottGem]

Please review the guidelines on asking for help with homework that can be found here:



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[rrusche]

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.

[ScottGem]

Doesn't really matter. We aren't going to do your work for you and posting a bunch of these questions in shotgun fashion is not allowed. You need to show that you attempted to figure out the problem. We can critique your work, but aren't going to do it for you.