Reference no: EM133128076

Question - Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for ½ of the sales, the other 10 customers account for the remaining sales. The 10 smaller customers place orders of about equal size. The large customer purchases 1,000,000 units per year by placing 3 orders per year, and the 10 smaller customers order 1,000,000 units in total by placing 300 orders per year. Order filling costs total $484,800 per year. How much would be assigned to the large customer as ordering costs using activity-based customer costs?