Blue Vibrance Company Sells a Product Used in Many Manufacturing

question 1

Multiple Choice

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

• A)$4,000,000
• B)$3,840,000
• C)$3,837,670
• D)$2,330,000

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Definitions:

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Cannon-Bard Theory

A theory of emotion that argues that physiological arousal and emotional experience occur simultaneously.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more conflicting beliefs, ideas, or values at the same time.

Frustration/Aggression

A theory suggesting that aggression is the result of blocking, or frustration, of certain behaviors or goals.