A customer places 10 orders with a total direct cost of


A company using activity based pricing marks up the direct cost of goods by 40% plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $6.00 per order placed; $3.00 per separate item ordered; $28.00 per return. A customer places 10 orders with a total direct cost of $2,000, orders 300 separate items, and makes 5 returns. What will the customer be charged?

Solution Preview :

Prepared by a verified Expert
Business Management: A customer places 10 orders with a total direct cost of
Reference No:- TGS01546417

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)