Question - Stage 2 ABC for a Wholesale Company
Information is presented for the activity costs of Brighton Wholesale Company:
|
Activity
|
Cost per unit of activity driver
|
|
Customer Relations
|
$80 per customer per month
|
|
Selling
|
$0.07 per sales dollar
|
|
Accounting
|
$5.00 per order
|
|
Warehousing
|
$0.50 per unit shipped
|
|
Packing
|
$0.25 per unit shipped
|
|
Shipping
|
$0.30 per pound shipped
|
The following information pertains to Brighton Wholesale Company's activities in Colorado for the month of June 2007.
|
Number of orders
|
320
|
|
Sales Revenues
|
$197,100
|
|
COGS
|
$103,680
|
|
# of customers
|
40
|
|
Units Shipped
|
5,400
|
|
Pounds Shipped
|
81,000
|
Determine the profitability of sales in Colorado for June 2017.