A company uses activity-based pricing. The pricing structure is to charge customers the direct cost of the product they order with a markup of 30% on direct costs plus the cost of the provided services. The service costs are $8.00 per order, $12.00 for each product ordered, and $2.00 per pound for shipping. Ozuma Industries makes 10 orders for goods with a direct cost of $10,000. They order 80 different products that weigh a total of 1,800 lbs. What is the total price paid by Ozuma?
A company uses activity-based pricing. The pricing structure is to charge customers the direct cost of the product they order with a markup of 30% on direct costs plus the cost of the provided services. The service costs are $8.00 per order, $12.00 for each product ordered, and $2.00 per pound for shipping. Ozuma Industries makes 10 orders for goods with a direct cost of $10,000. They order 80 different products that weigh a total of 1,800 lbs. What is the total price paid by Ozuma?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company uses activity-based pricing. The pricing structure is to charge customers the direct cost of the product they order with a markup of 30% on direct costs plus the cost of the provided services. The service costs are $8.00 per order, $12.00 for each product ordered, and $2.00 per pound for shipping. Ozuma Industries makes 10 orders for goods with a direct cost of $10,000. They order 80 different products that weigh a total of 1,800 lbs. What is the total price paid by Ozuma?
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