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DATA INPUT
Customer-Related Activities Cost Driver Base Cost Driver Rate
Sales activity Sales visits 2,000$
Order taking Purchase orders 400
Special handling Units handled 100
Special shipping Shipments 1,000
Customer-Related Activities Caltex Computer Trace Telecom
Sales activity 8 6
Order taking 15 20
Special handling 800 600
Special shipping 18 20
Caltex Computer Trace Telecom
Sales revenue 380,000$ 247,600$
Cost of goods sold 160,000 124,000
General selling costs 48,000 36,000
General administrative costs 38,000 32,000
SOLUTION
1. Customer-profitability analysis:
Caltex Computer Trace Telecom
Sales revenue 380,000$ 247,600$
Customer-related costs:
Sales activity 16,000 12,000
