Figure 7-2. Steller 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:
Refer to Figure 7-2.Calculate the activity rate for selling goods.
A)$3,625 per sales call
B)$3,550 per sales call
C)$2,200 per sales call
D)$4,800 per sales call
E)$9,400 per sales call

Question

Figure 7-2. Steller 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:
 Refer to Figure 7-2.Calculate the activity rate for selling goods.
A)$3,625 per sales call 
B)$3,550 per sales call 
C)$2,200 per sales call 
D)$4,800 per sales call 
E)$9,400 per sales call

Quizplus · Accepted Answer

To calculate the activity rate for selling goods, we need to divide the total cost of selling goods by the total number of sales calls. The total cost of selling goods is given as $725,000 and the total number of sales calls is given as 200. Therefore, the activity rate for selling goods is $725,000/200 = $3,625 per sales call. Therefore, the best choice is A).