Stage 2 ABC for a Wholesale Company Information is presented for the activity co

Question

Stage 2 ABC for a Wholesale Company Information is presented for the activity costs of Oxford Wholesale Company. Activity Cost per Unit of Activity Driver Customer relations per month $100.00 per customer Selling 0.06 per sales dollar 5.00 per order 0.S0 per unit shipped 0.2s per unit shipped 0.20 per pound shipped Packing Shippine The folowing information pertains to Oxford Wholesale Company's activities in Massachusetts for the month of March 2016 Number of orders Sales rovenue Cost of goods sold $68.940 Number of customers Units shipped Pounds shipped $122,200 25 4,700 70,500 Determine the profitability of sales in Massachusetts for March 2016 Oxford Wholesale Company March 2016 Sales revenue Cost of goods sold Customer relations 0 Selling expense Packing Shipping Profitability of sales Check

Explanation / Answer

Profitability of sales Sales revenue 122200 Less: Cost of goods sold 68940 Customer relations (25*100) 2500 Selling expenses (122200*0.06) 7332 Accounting (235*5) 1175 Warehousing (4700*0.50) 2350 Packing (4700*0.25) 1175 Shipping (70500*0.20) 14100 97572 Profitability of sales 24628

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