Problem:
A company using activity based pricing marks up the cost of goods by 0.27 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $7.90 per order placed; $2.80 per separate item ordered; $25.20 per return. A customer places 10 orders with a total direct cost of $2,900, orders 276 separate items, and makes 5 returns.
Required:
Question: What will the customer are charged?
Note: Provide support for your underlying principle.