4 Empire Corporati study The study indicates Empre should ch

4. Empire Corporati study. The study indicates Empre should charge $14 per order, 3% of the order\'s value for gene deli on prices delivery service based on the results of a recent activity-based costing (ABC very costs, $5.20 per item, and $45 for deliv information for two of its best customers: Cost driver Number of orders78 Number of items Order value Customer D 14 Customer C 15 ? $215,000 deliveries 3,400 100 $75,000 245%. What are the total delivery costs charged to Customer D during the year? 9,776 50 1

Solution

Calculate total delivery cost :

So answer is a) $29776

General delivery cost (75000*3%)	2250
Per item (5100*5.2)	26520
Per order (14*14)	196
Per delivery (18*45)	810
Total delivery cost	29776