Answer:
1 | Revenue from university and Memorial | ||||
Cost price | Mark Up | Mark Up Amount | Revenue | ||
A | B | (C = A*B) | D = A+C | ||
University | 35000 | 8% | 2800 | 37800 | |
Memorial | 35000 | 8% | 2800 | 37800 |
2 | Activity rate for each activity cost pool | ||||
Activity | Activity measure | Total Activity | Total Cost | Cost/Activity | |
A | B | C | D | E=D/C | |
Customer Deliveries | Number of Deliveries | 5000 | 420000 | 84 | |
Manual order Processing | Number of manual orders | 5000 | 355000 | 71 | |
Electronic Order Processing | Number of electronic orders | 13000 | 299000 | 23 | |
Line Item picking | Number of line items picked | 460000 | 874000 | 1.9 |
3 | Activity cost assigned to University and Memorial | |||
University | ||||
Activity Measure | No of Activity | Cost/Activity | Total Cost Assigned | |
A | B | C | D=B*C | |
Number of Deliveries | 15 | 84 | 1260 | |
Number of manual orders | 0 | 71 | - | |
Number of electronic orders | 11 | 23 | 253 | |
Number of line items picked | 200 | 1.9 | 380 | |
Total Cost assigned | 1893 | |||
Memorial | ||||
Activity Measure | No of Activity | Cost/Activity | Total Cost Assigned | |
A | B | C | D=B*C | |
Number of Deliveries | 23 | 84 | 1932 | |
Number of manual orders | 46 | 71 | 3266 | |
Number of electronic orders | 0 | 23 | - | |
Number of line items picked | 210 | 1.9 | 399 | |
Total Cost assigned | 5597 |
4 | Customer Margin | |||
Particulars | Formula Used | University | Memorial | |
A | Revenue | from Q1 | 37800 | 37800 |
B | Cost of material | From question | 35000 | 35000 |
C | Activity Cost | From Q3 | 1893 | 5597 |
D | Profit | A-B-C | 907 | (2797) |
Margin | D/A | 2.4% | -7.4% |
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies. For years, Worley believed that the 6% markup covered its selling and...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% markup covered its selling...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies. For years, Worley believed that the 7% markup covered its selling and...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies. For years, Worley believed that the 6% markup covered its selling and...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital 5106 to purchase these supplies. For years, Worley believed that the 6% markup covered its selling...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% markup covered its selling...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies. For years, Worley believed that the 7% markup covered its selling...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies. For years, Worley believed that the 6% markup covered its selling...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 9%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase these supplies. For years, Worley believed that the 9% markup covered its selling and...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% markup covered its selling and...