Question

Stage 2 ABC for a Wholesale Company
Information is presented for the activity costs of Brighton Wholesale Company:

Activity	Cost per Unit of Activity Driver
Customer relations	$82.00 per customer per month
Selling	0.09 per sales dollar
Accounting	7.00 per order
Warehousing	0.60 per unit shipped
Packing	0.35 per unit shipped
Shipping	0.40 per pound shipped

The following information pertains to Brighton Wholesale Company's activities in Colorado for the month of June 2017:

Number of orders	320
Sales revenue	$218,000
Cost of goods sold	$98,100
Number of customers	40
Units shipped	5,400
Pounds shipped	81,000

Required
Determine the profitability of sales in Colorado for June 2017.
Do not use a negative sign with your answers.

Profitability of Sales in Colorado
March 2017
Sales revenue		$Answer
Less:
Cost of goods sold	$Answer
Customer relations	Answer
Selling expenses	Answer
Accounting	Answer
Warehousing	Answer
Packing	Answer
Shipping	Answer	Answer
Profitability of sales		$Answer

Answer 1

	Profitability of Sales in Colorado
		Jun-17
Sales Revenue			$218,000
Less Cost of Goods Sold		$98,100
Customer Relation	$82*40	$3,280
Selling Expenses	$218000*.09	$19,620
Accounting	320*7	$2,240
Warehousing	5400*.60	$3,240
Packing	5400*.35	$1,890
Shipping	81000*.40	$32,400	$160,770
Profitability of Sales			$57,230