Workshape Manufacturing has two classes of distributors: JIT distributors and no

Question

Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT di places small, frequent orders, and the non-JIT distri distributors purchase the same product. The customer activities and costs for the previous quarter are as follows: butor tends to place larger, less frequent orders. Both types of JIT distributors Non-JIT distributors Activity Sales Orders Sales Calls Service Calls Average Order Size Manufacturing Cost/Unit 30 500 30 200 90 $50 1,400 $50 Customer Costs: Selling Goods Servicing Goods Total $160,000 $155,000 $195,000 $500,000 Calculate the activity rate for selling goods. (Note: Round answer to two decimal places.) Oa. $2,583.33 per sales call b. $2,200.50 per sales call

Explanation / Answer

Activity rate for selling goods = 155000/(30+30)= $2583.33 per sales call Option A is correct

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