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Subject P2: Advanced Management Accounting

1.4 C
Customer A Customer B

Sales calls 12 × $1,000 = $12,000 4 × $1,000 = $4,000
Order processing 5 × $300 = $1,500 30 × $300 = $9,000
Deliveries 5 × $500 = $2,500 30 × $500 = $15,000

Sales returns costs 2 × $100 = $200 5 × $100 = $500
Sales returns costs per unit 40 × $5 = $200 175 × $ 5 = $875
returned
Total cost to serve $16,400 $29,375
Gross profit $248,000 $291,250
Net profit $231,600 $261,875

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