Colleen Company has gathered the following data pertaining to activities it performed for two of...
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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers Kate Co 50 310 Jerry Inc. Number of orders 3 2,000 Units per order Sales returns Number of returns Total units returned Number of sales calls 180 60 12 Colleen sells its products at $200 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business intelligence software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs Activity Sales calls Order processing Deliveries Sales returns Sales salary Cost Driver and Rate $ 600 per visit 240 per order 310 per order 300 per return and S5 per unit returned 88,000 per month
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