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Atter studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categorles of selling costs and chosen cost difivers for each of these costs. The selling costs actually incurred during the past year and the cost divers are as follows: The knitting yam is sold to retall outlets in boxes, each containing 12 skeins of yarn. The sale of partial boxes is not permitted. Commissions are paid on sales to retal outlets but not on catalog sales. The cost of catalog sales includes telephone costs and the wages of personnel who take the catalog orders. Jackson belleves that the selling costs vary significantly with the size of the order. Order sizes are divided into three categories as follows: An analysis of the previous year's records produced the following statistes. REDWOOD COMPANY Computation of Selling Costs By Order Size and Per Skein Within Each Ordet Size Order:Size \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{3}{*}{ Sales commussions } & \multicolumn{8}{|c|}{ Order:size } \\ \hline & \multicolumn{2}{|c|}{ Small } & \multicolumn{2}{|c|}{ Medium } & \multicolumn{2}{|c|}{ Large } & \multicolumn{2}{|c|}{ Total } \\ \hline & s & 6.250 & $ & 116.250 & 5 & 447,500 & $ & 570,000 \\ \hline Catalogs & & & & & & 3 & & 0 \\ \hline Cost of catalog sales: & & & & & & & & 0 \\ \hline Credit and collection & & & & & & & & 0 \\ \hline Total cost for all orders of a given site & 5 & 6.250 & 5 & 116.250 & s & 447,500 & 5 & 570,000 \\ \hline Units (skenins) sold & & & & & & & & \\ \hline Unt cost per order of a given sure & & & & & & & & \\ \hline \end{tabular} Atter studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categorles of selling costs and chosen cost difivers for each of these costs. The selling costs actually incurred during the past year and the cost divers are as follows: The knitting yam is sold to retall outlets in boxes, each containing 12 skeins of yarn. The sale of partial boxes is not permitted. Commissions are paid on sales to retal outlets but not on catalog sales. The cost of catalog sales includes telephone costs and the wages of personnel who take the catalog orders. Jackson belleves that the selling costs vary significantly with the size of the order. Order sizes are divided into three categories as follows: An analysis of the previous year's records produced the following statistes. REDWOOD COMPANY Computation of Selling Costs By Order Size and Per Skein Within Each Ordet Size Order:Size \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{3}{*}{ Sales commussions } & \multicolumn{8}{|c|}{ Order:size } \\ \hline & \multicolumn{2}{|c|}{ Small } & \multicolumn{2}{|c|}{ Medium } & \multicolumn{2}{|c|}{ Large } & \multicolumn{2}{|c|}{ Total } \\ \hline & s & 6.250 & $ & 116.250 & 5 & 447,500 & $ & 570,000 \\ \hline Catalogs & & & & & & 3 & & 0 \\ \hline Cost of catalog sales: & & & & & & & & 0 \\ \hline Credit and collection & & & & & & & & 0 \\ \hline Total cost for all orders of a given site & 5 & 6.250 & 5 & 116.250 & s & 447,500 & 5 & 570,000 \\ \hline Units (skenins) sold & & & & & & & & \\ \hline Unt cost per order of a given sure & & & & & & & & \\ \hline \end{tabular}

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