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 total customer cost for the non-JIT distributor.
A)$150,025
B)$122,500
C)$175,200
D)$138,247
E)$178,791

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 total customer cost for the non-JIT distributor.
A)$150,025 
B)$122,500 
C)$175,200 
D)$138,247 
E)$178,791

Quizplus · Accepted Answer

To calculate the total customer cost for the non-JIT distributor, we need to add all customer cost items for non-JIT distributors.

Total customer cost for non-JIT distributor = Order processing cost + Product handling cost + Transportation cost + Purchasing cost 
= $75,450 + $32,000 + $20,550 + $10,247 
= $138,247

Therefore, the answer is D.