Delauder Enterprises Makes a Variety of Products That It Sells

question 42

Multiple Choice

Delauder Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that activity-based costing system are listed below: The cost of serving customers, $1,608.00 per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below:
According to the activity-based costing system, the customer margin for this customer this past year was closest to:

• A) $9,375.00
• B) $5,340.65
• C) $23,790.65
• D) $15,300.00

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variability or dispersion around an average.

Defined Contribution Plan

A type of retirement plan where an employer, employee, or both make contributions on a regular basis, and future benefits fluctuate based on investment performance.

Risk-free Return

The theoretical return on an investment with no risk of financial loss over a certain period.

Standard Deviation

A statistic that quantifies the dispersion or variability of a set of data points or investment returns around their mean.