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  3. 1. outdoor sports corp. produces high-end sports c

1. Outdoor Sports Corp. produces high-end sports cycles for six major buyers. Of the six...

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Accounting

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1. Outdoor Sports Corp. produces high-end sports cycles for six major buyers. Of the six major customers, one customer accounts for 50% of the sales of Outdoor Sots, whereas the other five customers account for the rest of the sales of Outdoor Sports. It can be assumed that the other customers purchase parts in roughly equal quantities, and the orders placed by these customers are about the same size. For the current year, Outdoor Sports allocates $110,000 as order filling costs for the large customer. The al filling costs for the other five customers is also $110,000. The large customer placed 20 orders during the year, whereas the smaller customers placed 200 orders during the same period. The total cost of sales force was $110,000, of which, 50% was allocated to the large customer, and the other 50% was allocated to the smaller clients. Calculate the order filling costs per order, which are used allocation to customers using the ABC approach, assuming that Outdoor Sports made an overall sales of 12,000 a. $1,500 per order b. $1,000 per order c. $500 per order

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