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 $95.00 per customer Selling Accounting Warehousing Packing Shipping 0.07 per sales dollar 5.00 per order 0.50 per unit 0.25 per unit shipped 0.20 per pound shipped shipped The following information pertains to Oxford Wholesale Company's activities in Massachusetts for the month of March 2016 Number of orders Sales revenue Cost of goods sold Number of customers Units shipped Pounds shipped 235 $123,200 $69,440 25 4,700 70,500 Determine the profitability of sales in Massachusetts for March 2016. Oxford Wholesale Company Massachusetts Profitability of Sales March 2016 Sales revenue 0 Less Cost of goods sold $ Customer relations Selling expenses Accounting Warehousing Packing Shipping Profitability of sales Check

Answer 1

Working
[given]	Sales Revenue		$             123,200
	Less:
[given]	Cost of Goods Sold	$                69,440
[25 customers x $95]	Customer Relations	$                  2,375
[$123200 x 0.07]	Selling expenses	$                  8,624
[235 orders x $5]	Accounting	$                  1,175
[4700 units x $0.50]	Warehousing	$                  2,350
[4700 units x $0.25]	Packing	$                  1,175
[70500 pounds x $ 0.2]	Shipping	$                14,100	$               99,239
	Profitability of Sales		$               23,961