Blue Vibrance Company Sells a Product Used in Many Manufacturing

question 115

Multiple Choice

Blue Vibrance Company sells a product used in many manufacturing processes. The sales activity involves three activity areas: $\begin{array}{ll}\text { Activity Area } & \text { Cost Driver and Rate } \\\text { Order taking } & \$ 100 \text { per purchase order } \\\text { Sales visits } & \$ 50 \text { per visit } \\\text { Delivery vehicles } & \$ 1 \text { per delivery mile }\end{array}$
The following customer information is given: $\begin{array}{lrr}&\mathrm{AX} & \mathrm{BY} & \mathrm{DZ}\\\text { Units sold } & 100,000 & 80,000&60,000 \\\text { List price } & \$ 50 & \$ 50&\$50 \\\text { Actual sal es price } & \$ 45 & \$ 48 &\$50\\\text { Number of purchase orders } & 30 & 20 &10\\\text { Number of sales visits } & 6 & 5&3 \\\text { Number of delivery miles } & 100 & 80&60\end{array}$
Which customer is most profitable?

• A)AX
• B)BY
• C)DZ
• D)They are equally profitable.

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