A- using activity based costing for the allocation of
operating expenses of Alberto company. Compute operating profit or
loss made from customer Zillow company.
B- using activity based costing for the allocation of operating
expenses of Alberto company. compute operating profit or loss made
from customer Selma Company
X X Brightspace New Tab 4 _ XC 62 Help Center? Alberto Company buys a product called Zoom at $15 each and sells it at $20 per unit. Company management has become interested in measuring the profitability of two of its customers for marking purposes. In response to management information needs, the accountant has prepared the following Customer Profitability Report in which operating expenses are allocated based upon sales revenues (4.5% of net sales revenues). Customer Profitability Report Selma Company 20.000 $20.00 Zillow Company 22.000 $20.00 Sales Units Selling Price $400.000.00 $440.000.00 $300,000.00 $330.000.00 Sales Cost of Goods Sold ($15 per unit) Gross Profit Operating expenses (4.5% of net sales) Operating profit $110.000.00 $100,000.00 $18.000.00 $82.000.00 $19.800.00 $90.200.00 X New Tab Brightspace 4 _ XC Help Center Activity Sales calls cost (paid to salespeople) Order processing cost Delivery cost Cost Driver and Rate $800 per visit $300 per order plus $0.40 per unit in each order $250 per order plus $0.50 per mile Lisa has gathered the following data pertaining to operating activities performed for Selma and Zillow customers: Zillow Company 11 Number of sales calls Number of Orders Number of units per orden Miles per delivery Selma Company 4 4 5.000 100 miles 2.000 280 miles Using Activity Based Costing for the allocation of operating expenses of Alberto Company, compute operating profit or loss made from customer Selma Company
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