Costs based on the activities utilized by the customer

Assignment Help Financial Management

Reference no: EM131074582

A company using activity based pricing marks up the direct cost of goods by 0.27 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $6.10 per order placed; $3.00 per separate item ordered; $26.40 per return. A customer places 9 orders with a total direct cost of $2,800, orders 295 separate items, and makes 6 returns. What will the customer be charged?

Reference no: EM131074582

Questions Cloud

The measures for mitigating operational risks : Assuming that the measures for mitigating operational risks that underpinned the Dabhol power project were a problem, discuss how Enron may have demonstrated “credible commitment” to the Dabhol power project. Detailed critical analysis of 1200 words ..

Find market value of the bonds using semiannual analysis : Cox Media Corporation pays a coupon rate of 7 percent on debentures that are due in 10 years. The current yield to maturity on bonds of similar risk is 6 percent. The bonds are currently callable at $1,070. Find the market value of the bonds using se..

Calculate the present value of total outflows : The Bowman Corporation has a bond obligation of $26 million outstanding, which it is considering refunding. Though the bonds were initially issued at 11 percent, the interest rates on similar issues have declined to 9.9 percent. Calculate the present..

Annual after-tax cash flow-weighted-average cost of capital : A. Unitron Corp. is considering project Z, which costs $50 million and offers an annual after-tax cash flow of $7.5 million in perpetuity. The project is in an industry that has greater market risk than Unitron’s typical projects. Unitron’s company w..

Costs based on the activities utilized by the customer : A company using activity based pricing marks up the direct cost of goods by 0.27 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $6.10 per order placed; $3.00 per sepa..

Calculate the net present value of the system : The law firm of Bushmaster, Cobra and Asp is considering investing in a complete small business computer system. The initial investment will be $50,000. The computer is in the 5-year MACRS category, and the firm's tax rate is 34%. Calculate the net p..

What are the ethical considerations involved in decision : You are the CEO of a small pharmaceutical company. Your company is privately held, with 75 shareholders; however, you own a majority of the shares and thus, you maintain control over the Board of Directors. Describe how those theories apply to this s..

The discrepancy between the feasibility of project : The discrepancy between the feasibility of a project in a host country from the perspective of the U.S. parent versus the subsidiary administering the project is likely to be greater for projects in countries where:

Nobel-prize winning black-scholes options pricing model : The nobel-prize winning black-scholes options pricing model has been the worst widely used trading tool for options in the past decades.is it really such a perfect mathematical model to compute option value? if not, how do market participants make ad..

User Account

All Pages