Moustache Manufacturing Has Two Classes of Distributors: JIT Distributors and Non-JIT

question 142

Multiple Choice

Moustache 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:
$$\begin{array} { l r r } & \text { JIT } & \text { Non-JIT } \\\text { Sales Orders } & 300 & 20 \\\text { Sales Calls } & 25 & 25 \\\text { Service Calls } & 150 & 75 \\\text { Average Order Size } & 100 & 1,000 \\\text { Manufacturing Cost/Unit } & \$ 50 & \$ 50\end{array}$$ $$\begin{array}{l}\text { Customer Costs: }\\\begin{array} { l l } \text { Processing Sales Orders } & \$ 200,000 \\\text { Selling Goods } & \$ 120,000 \\\text { Servicing Goods } & \$ 150,000 \\\text { Total } & \$ 470,000\end{array}\end{array}$$
-Refer to the Figure.What is the activity rate for selling goods?

• A)$375 per sales call
• B)$1,200 per sales call
• C)$2,400 per sales call
• D)$4,800 per sales call

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Definitions:

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The amount of space that an object or substance occupies, measured in cubic units, relevant in various scientific and everyday contexts.

Soil Samples

Collections of soil taken from specific locations and depths for the purpose of scientific analysis or agricultural testing.