Wholesale Customers West Region Wholesaler East Region Wholesaler Retail Customers Sloan Inc. $330,000 Snyder Corp Revenues at list prices $745,000 $1,200,000 $320,000 Discounts from list prices 52,300 78,500 20,200 6,130 Cost of goods sold 610,000 1,010,000 302,000 170,000 Delivery costs 28,100 23,470 16,530 14,300 Order processing costs 12,680 16,890 9,420 7,230 Costs of sales visits 12,700 10,300 9,310 8,160 Mason's annual distribution-channel costs are $35,000 for wholesale customers and $16,000 for retail customers. Changes in customer behavior do not affect distribution-channel costs. The company's annual corporate costs are $46,000. There is no cause-and-effect or benefits-received relationship between any cost- allocation base and corporate-sustaining costs. That is, Mason could save corporate-sustaining costs only if the company completely shuts down.
Wholesale Customers West Region Wholesaler East Region Wholesaler Retail Customers Sloan Inc. $330,000 Snyder Corp Revenues at list prices $745,000 $1,200,000 $320,000 Discounts from list prices 52,300 78,500 20,200 6,130 Cost of goods sold 610,000 1,010,000 302,000 170,000 Delivery costs 28,100 23,470 16,530 14,300 Order processing costs 12,680 16,890 9,420 7,230 Costs of sales visits 12,700 10,300 9,310 8,160 Mason's annual distribution-channel costs are $35,000 for wholesale customers and $16,000 for retail customers. Changes in customer behavior do not affect distribution-channel costs. The company's annual corporate costs are $46,000. There is no cause-and-effect or benefits-received relationship between any cost- allocation base and corporate-sustaining costs. That is, Mason could save corporate-sustaining costs only if the company completely shuts down.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wholesale Customers
West Region Wholesaler East Region Wholesaler
Retail Customers
Sloan Inc.
$330,000
Snyder Corp
Revenues at list prices
$745,000
$1,200,000
$320,000
Discounts from list prices
52,300
78,500
20,200
6,130
Cost of goods sold
610,000
1,010,000
302,000
170,000
Delivery costs
28,100
23,470
16,530
14,300
Order processing costs
12,680
16,890
9,420
7,230
Costs of sales visits
12,700
10,300
9,310
8,160
Mason's annual distribution-channel costs are $35,000 for wholesale customers
and $16,000 for retail customers. Changes in customer behavior do not affect
distribution-channel costs. The company's annual corporate costs are $46,000.
There is no cause-and-effect or benefits-received relationship between any cost-
allocation base and corporate-sustaining costs. That is, Mason could save
corporate-sustaining costs only if the company completely shuts down.
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