Limpio Company produces dishwashers for 36 retail outlets. Of the 36 retail outlets, 34 are small,

Limpio Company produces dishwashers for 36 retail outlets. Of the 36 retail outlets, 34 are small, separately owned appliance stores and two are large retail chains. The two large retailers buy 80% of the dishwashers produced. The 34 smaller customers purchase dishwashers in approximately equal quantities, where the orders are about the same size. Data concerning Limpio’s customer activity are as follows: Large Retailers Smaller Retailers Units purchased……………………………………..60,000……………………15,000 Orders placed…………………………………………….20……………………..1,500 Number of sales calls………………………………………8………………………816 Manufacturing costs…………………………….$4,500,000………………$1,125,000 Order filling costs allocated*…………………….$ 646,400………………..$ 161,600 Sales force costs allocated*………………………$ 320,000…………………$ 80,000 *Currently allocated on sales volume (units sold). Currently, customer-driven costs are assigned to customers based on units sold, a unit-level driver. Required: Assign costs to customers by using an ABC approach. Round activity rates and activity costs to the nearest dollar.

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