Activity Customer Deliveries Manual Order Processing Electronic Order Processing Line Item Picking Activity Measure Cost Pool $ 400,000 5,000 deliveries $ 300,000 4,000 orders $200,000 12,500 orders $ 500,000 400,000 line items Activity Rate per delivery per order per order per line item St. Bibiana's Usage 12 12 256 Total MOH Cost General Hospital Usage Cost 50 50 300 5) RKJW & Co. is a medical wholesaler which sells medical supplies to hospitals and urgent care centers in the upper Midwest. To assess the profitability of its customers, RKJW has decided to implement an activity-based profitability analysis with the hope of reducing costs Using the data provided, determine the activity rate for each activity, then compute the total costs, assigned to each of St. Bibiana's Medical Center and General Hospital, as well as the contribution margin ratio of each client. Revenue Cost of Goods Sold Variable OH Contribution Margin CM Ratio St. Bibiana's General Hospital S $ 30,000 20,000 24,000 $ 16,000 $
Activity Customer Deliveries Manual Order Processing Electronic Order Processing Line Item Picking Activity Measure Cost Pool $ 400,000 5,000 deliveries $ 300,000 4,000 orders $200,000 12,500 orders $ 500,000 400,000 line items Activity Rate per delivery per order per order per line item St. Bibiana's Usage 12 12 256 Total MOH Cost General Hospital Usage Cost 50 50 300 5) RKJW & Co. is a medical wholesaler which sells medical supplies to hospitals and urgent care centers in the upper Midwest. To assess the profitability of its customers, RKJW has decided to implement an activity-based profitability analysis with the hope of reducing costs Using the data provided, determine the activity rate for each activity, then compute the total costs, assigned to each of St. Bibiana's Medical Center and General Hospital, as well as the contribution margin ratio of each client. Revenue Cost of Goods Sold Variable OH Contribution Margin CM Ratio St. Bibiana's General Hospital S $ 30,000 20,000 24,000 $ 16,000 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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