Nourse 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 ABC system are listed below: The cost of serving customers, $2,026.00 per customer, is the cost of serving a customer for one year. Koerner 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 ABC system, the customer margin for this customer this past year was closest to:
A) $14,670.00
B) $10,578.55
C) $16,020.00
D) $19,083.55

Question

Nourse 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 ABC system are listed below:  The cost of serving customers, $2,026.00 per customer, is the cost of serving a customer for one year. Koerner 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 ABC system, the customer margin for this customer this past year was closest to:
A) $14,670.00 
B) $10,578.55 
C) $16,020.00 
D) $19,083.55

Quizplus · Accepted Answer

Customer Margin-ABC Analysis
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Nourse Enterprises Makes a Variety of Products That It Sells