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 Calculate the activity rate for selling goods. (Note: Round answer to two decimal places.) a.$2,200.50 per sales call b.$9,400.60 per sales call c.$3,550.66 per sales call d.$2,583.33 per sales call e.$4,800.40 per sales call
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 Calculate the activity rate for selling goods. (Note: Round answer to two decimal places.) a.$2,200.50 per sales call b.$9,400.60 per sales call c.$3,550.66 per sales call d.$2,583.33 per sales call e.$4,800.40 per sales call
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.2SA
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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
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
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