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C027 Dealer account 027 Dealer

Revenue108,184
Direct margin37,110
Activity cost32,595
ABC profit4,515 (4.2%)
Traditional profit11,598

subsidised Traditional costing assigns 25,512 of overhead from 912 labour hours; ABC assigns 32,595.

Profit waterfall

025,00050,00075,000100,000125,000 Revenue: 108,184 108,184 RevenueDirect cost: -71,074 -71,074 Direct costDirect margin: 37,110 37,110 Direct marginSetups: -6,124 -6,124 SetupsMachine run: -5,064 -5,064 Machine runDelivery: -4,220 -4,220 DeliveryQuality inspection: -3,311 -3,311 Quality inspectionCustom finishing: -3,179 -3,179 Custom finishingEngineering changes: -3,046 -3,046 Engineering changesOther activities: -7,651 -7,651 Other activitiesProfit: 4,515 4,515 Profit

Activity costs

ActivityCostShare
Setups6,12419%
Machine run5,06416%
Delivery4,22013%
Quality inspection3,31110%
Custom finishing3,17910%
Engineering changes3,0469%
Hand assembly2,7899%
Order processing1,9566%
Pallet handling1,5815%
Customer support8243%
Credit and collections5022%
Returns handling00%