I need help with a business and finance assignment
Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below:
Cost Pool Annual Cost Cost Driver Annual Driver Quantity
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Processing electronic orders $1,000,000 Number of orders 500,000
Processing non-electronic orders $2,000,000 Number of orders 400,000
Picking orders $3,000,000 Number of different products ordered 800,000
Packaging orders $1,500,000 Number of items ordered 50,000,000
Returns $2,000,000 Number of returns 50,000
If all costs were assigned to customers based on the number of items ordered, what would be the cost per item ordered?
