[Solved] Express Travel Decides to Price Delivery Services According to the Results

Question 50
Multiple Choice

Express Travel decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Express Travel should charge $16 per order, 1% of annual order value for general delivery costs, $2.50 per item, and $45 for delivery. A year later, Express Travel collected the following information for three of its customers: img What are the total delivery costs charged to Customer B during the year?

A) $13,490.
B) $11,378.
C) $10,800.
D) $10,578.

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