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Question - Stage 2 ABC for a Wholesale Company

Information is presented for the activity costs of Brighton Wholesale Company:

Activity 

Cost per unit of activity driver 

Customer Relations 

$80 per customer per month

Selling

$0.07 per sales dollar 

Accounting

$5.00 per order 

Warehousing

$0.50 per unit shipped

Packing

$0.25 per unit shipped 

Shipping

$0.30 per pound shipped 

The following information pertains to Brighton Wholesale Company's activities in Colorado for the month of June 2007.

Number of orders

320

Sales Revenues

$197,100

COGS

$103,680

# of customers

40

Units Shipped

5,400

Pounds Shipped 

81,000

Determine the profitability of sales in Colorado for June 2017.

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