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Compute the amount of shipping cost assigned to the customer

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Problem - This year, Lambert Company will ship 1,500,000 pounds of goods to customers at a cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 of revenue (total revenue is $20 million), compute the amount of shipping cost assigned to the customer by using ABC?

a. unable to be determined.

b. $8,000 ($0.80 per pound shipped).

c. $24,000 (2% of the shipping cost).

d. $12,000 (1% of the shipping cost).

e. None of these.

Reference no: EM132699924

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