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The cost and profitability of the five orders, using the cost driver information and its existing costing system:
(1) The ABC system:
Order 1 2 3 4 5
Sales $610.00 $ 634.00 $6,100.00 $6,340.00 $6,100.00
Cost of goods sold 500.00 500.00 5,000.00 5,000.00 5,000.00
Gross margin $110.00 $ 134.00 $1,100.00 $1,340.00 $1,100.00
Cost of :
entering electronic order1a $ 3.50 $ ?? $ 3.50 $ ?? $ ??
entering manual order1b ?? 7.88 ?? 31.50 31.50
processing cartons2 50.25 50.25 502.50 502.50 502.50
shipping cartons commercially3
desktop deliveries ?? 300.00 ?? 300.00 ??
interest on A/R balance 6...
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