Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are as follows:ActivityJIT distributorsNon-JIT distributorsSales Orders50030Sales Calls3030Service Calls20090Average Order Size901,400Manufacturing Cost/Unit$50$50 Customer Costs: Processing Sales Orders$160,000 Selling Goods$155,000 Servicing Goods$195,000 Total$500,000 Calculate the activity rate for selling goods. (Note: Round answer to two decimal places.)a.$2,200.50 per sales callb.$9,400.60 per sales callc.$3,550.66 per sales calld.$2,583.33 per sales calle.$4,800.40 per sales call

Formula to be used; The activity rate for selling goods = Total activity cost / No. of total sales…

Answered: Workshape Manufacturing has two classes…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are as follows:

Activity	JIT distributors	Non-JIT distributors
Sales Orders	500	30
Sales Calls	30	30
Service Calls	200	90
Average Order Size	90	1,400
Manufacturing Cost/Unit	$50	$50


Customer Costs:
Processing Sales Orders	$160,000
Selling Goods	$155,000
Servicing Goods	$195,000
Total	$500,000