Figure 7-2

question 111

Multiple Choice

Figure 7-2. Steller Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors.The JIT distributor places small,frequent orders and the non-JIT distributor tends to place larger,less frequent orders.Both types of distributors purchase the same product.The customer activities and costs for the previous quarter are found below:
Refer to Figure 7-2.Calculate the activity rate for selling goods.

• A)$3,625 per sales call
• B)$3,550 per sales call
• C)$2,200 per sales call
• D)$4,800 per sales call
• E)$9,400 per sales call

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering into contracts, and being sued or suing.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights such as voting on corporate matters.

Unlimited Personal Liability

A legal obligation where an individual can be held personally responsible for the debts and obligations of a business entity without any limit on the amount.

General Partners

Individuals in a partnership who are responsible for the management of the partnership, have unlimited liability for its debts, and share the partnership's profits.