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    Murkoff Industries

    Uploaded by

    Nicolyn Rae Escalante
    The document shows sales, costs, and revenue data for regular and non-regular customers of Murkoff Industries. Regular customers generate more sales orders and service calls but have smaller average order sizes, while non-regular customers have fewer sales orders and service calls but larger average order sizes. The total customer costs are $4 million and are currently allocated equally at $12.5 per unit for both customer types, but the actual customer-driven costs per unit are $18.69 for regulars and $6.31 for non-regulars based on their different activity levels.

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    Murkoff Industries

    Uploaded by

    Nicolyn Rae Escalante
    13 views1 page
    The document shows sales, costs, and revenue data for regular and non-regular customers of Murkoff Industries. Regular customers generate more sales orders and service calls but have smaller average order sizes, while non-regular customers have fewer sales orders and service calls but larger average order sizes. The total customer costs are $4 million and are currently allocated equally at $12.5 per unit for both customer types, but the actual customer-driven costs per unit are $18.69 for regulars and $6.31 for non-regulars based on their different activity levels.

    Original Description:

    Managerial Problems

    Original Title

    2MA

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    The document shows sales, costs, and revenue data for regular and non-regular customers of Murkoff Industries. Regular customers generate more sales orders and service calls but have smaller average order sizes, while non-regular customers have fewer sales orders and service calls but larger average order sizes. The total customer costs are $4 million and are currently allocated equally at $12.5 per unit for both customer types, but the actual customer-driven costs per unit are $18.69 for regulars and $6.31 for non-regulars based on their different activity levels.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    13 views1 page

    Murkoff Industries

    Uploaded by

    Nicolyn Rae Escalante
    The document shows sales, costs, and revenue data for regular and non-regular customers of Murkoff Industries. Regular customers generate more sales orders and service calls but have smaller average order sizes, while non-regular customers have fewer sales orders and service calls but larger average order sizes. The total customer costs are $4 million and are currently allocated equally at $12.5 per unit for both customer types, but the actual customer-driven costs per unit are $18.69 for regulars and $6.31 for non-regulars based on their different activity levels.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 1

    MURKOFF INDUSTRIES

    Regular Customers Non-Regular Customers


    Sales Orders 200 20
    Sales Calls 50 50
    Service Calls 200 100
    Average Order Size 800 8000
    Manufacturing Cost/ unit $ 200.00 $ 200.00
    Selling Price $ 250.00 $ 250.00
    Customer costs:
    Processing sales orders $ 2,090,000.00
    Selling goods 1,100,000.00
    Servicing goods 810,000.00
    Total $ 4,000,000.00

    Regular Customers Non-Regular Customers


    Revenues $ 40,000,000.00 $ 40,000,000.00
    Customer Costs
    Processing sales orders 1,900,000.00 190,000.00
    Selling goods 550,000.00 550,000.00
    Servicing goods 540,000.00 270,000.00
    Total Costs 2,990,000.00 1,010,000.00
    Customer Driven Cost per unit (ABM) $ 18.69 $ 6.31

    Customer Costs currently allocated 2,000,000.00 2,000,000.00


    Customer Costs allocated per unit 12.5 12.5

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