What will the customer be charged?

Nov 27th, 2015
Anonymous
Category:
Accounting
Price: $5 USD

Question description

A company using activity based pricing marks up the direct cost of goods by 0.28 percent plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $7.40 per order placed; $2.90 per separate item ordered; $28.60 per return. A customer places 10 orders with a total direct cost of $2,900, orders 268 separate items, and makes 7 returns. What will the customer be charged?

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