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C032 Dealer account 032 Dealer

Revenue79,962
Direct margin28,489
Activity cost21,015
ABC profit7,474 (9.3%)
Traditional profit12,234

subsidised Traditional costing assigns 16,255 of overhead from 581 labour hours; ABC assigns 21,015.

Profit waterfall

020,00040,00060,00080,000 Revenue: 79,962 79,962 RevenueDirect cost: -51,473 -51,473 Direct costDirect margin: 28,489 28,489 Direct marginSetups: -3,703 -3,703 SetupsDelivery: -3,535 -3,535 DeliveryMachine run: -3,029 -3,029 Machine runQuality inspection: -2,186 -2,186 Quality inspectionHand assembly: -1,777 -1,777 Hand assemblyOrder processing: -1,639 -1,639 Order processingOther activities: -5,147 -5,147 Other activitiesProfit: 7,474 7,474 Profit

Activity costs

ActivityCostShare
Setups3,70318%
Delivery3,53517%
Machine run3,02914%
Quality inspection2,18610%
Hand assembly1,7778%
Order processing1,6398%
Engineering changes1,4857%
Pallet handling1,2466%
Custom finishing1,1716%
Customer support8244%
Credit and collections4202%
Returns handling00%