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Picayune Company estimates that ordering costs are $6.00 per order, picking costs are $4.50 per unique item ordered, packing costs are $0.075 per item, and return costs are $135.00 per return. A customer orders $30,000 worth of goods with direct costs of $24,000. The customer places 200 orders, orders 240 unique items, 1600 items, and makes 22 returns. What is the profit (loss) on this customer?

A. $6,000

B. $630

C. $300

D. $1200

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M963050

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