Magenta Company Has Identified Seven Activities as Part of Its

question 101

Essay

Magenta Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity. The chart below lists the total cost of each activity, the proportion of activity driver used for each of Magenta's two products, and the activity cost assigned to each product. Fill in the blanks below:
Activity
Cost
Activity Driver
Proportion used by
Activity Cost: Prod. 1
Activity Cost: Prod. 2
Prod. 1
Prod. 2
Design
$60,000
Design time
40%
60%
a.
b.
Preparation
$18,000
Labor hours
50%
c.
$9,000
d.
Machining
$90,000
Machine hours
e.
f.
$27,000
g.
Finishing
h.
Batches
40%
i.
$10,000
j.
Inspection
k.
Units
l.
m.
$3,000
$6,000
Packaging
n.
Orders
o.
20%
$13,500
p.
Shipping
$17,000
Packages
70%
q.
r.
$5,100

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Definitions:

Channel Functions

The activities and roles that marketing channels perform to move products from producers to consumers, including logistics, information sharing, and negotiation.

Producers

Entities or individuals that create goods or services for consumption or use by others, playing a fundamental role in the supply chain.

Number Of Intermediaries

Refers to the count of intermediate agents or agencies between the producer and the consumer in the distribution channel of goods or services.

Channel Length

The total number of intermediary levels through which a product passes before reaching the final consumer.