Activity Cost Cost Driver Total # of Activity

Product Handling $ 672,000 # cases sold 800000

Taking orders from customers # purchase orders 500
$ 100,000
Delivering the product $ 140,000 # miles travelled 44800
Expediting deliveries $ 198,000 # expedited deliveries 2500
Sales visits to customers $ 90,000 # sales visits 360
Total $ 1,200,000

Product Handling 80000 80000 8000

Taking orders from customers 16 40 20
Delivering the product 550 7600 2200
Expediting deliveries 10 250 130
Sales visits to customers 12 25 18

Customer Profitability

Saver Midwellen
Oscar's OddLots
Superstore Supermarket

Revenue $ 1,168,000 $ 1,192,000 $ 121,520

COGS $ 1,048,000 $ 1,048,000 $ 104,800
Gross Margin $ 120,000 $ 144,000 $ 16,720
Customer Service Costs
Product Handling $ 67,200 $ 67,200 $ 6,720
Taking Orders $ 3,200 $ 8,000 $ 4,000
Delivering Products $ 1,719 $ 23,750 $ 6,875
Expediting Deliveries $ 792 $ 19,800 $ 10,296
Visiting Customers $ 3,000 $ 6,250 $ 4,500
Total Cost $ 75,911 $ 125,000 $ 32,391
Customer Profit $ 44,089 $ 19,000 $ (15,671)
Profitability 3.8% 1.6% -12.9%
 Unit $
$ 0.84

$ 200.00
$ 3.13
$ 79.20
$ 250.00

30000
30
920
90
9

Downtown
Retail

$ 454,500
$ 393,000
$ 61,500

$ 25,200
$ 6,000
$ 2,875
$ 7,128
$ 2,250
$ 43,453
$ 18,047
4.0%