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 selling goods cost ($145,000) by the total number of sales calls (40).

$145,000 ÷ 40 = $3,625 per sales call.

Therefore, the activity rate for selling goods is $3,625 per sales call.