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Calculate the profit earned from rayan construction

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Reference no: EM132530300

Casey corporation provides you with the following data:

                                         Rayan construction                                   Wilson builders                     Cost per activity unit

Sales                                      $400000                            $400000

Contribution margin                      30%                                     25%

Volume-related costs                    $0.27 per sales                           $

Number of orders                            50                                 20                                            $450 per order

Number of deliveries                        150                                 40                                       $100 per delivery

  • Casey further inform you that their ABC system has identified three primary cost pools (1) the volume sales (2) the number of orders and (3) the number of deliveries -as the cost drivers when allocating indirect costs to determine customer profitability

Required -

Question 1: Calculate the profit earned from Rayan construction and from wilson builders

Reference no: EM132530300

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