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C035 Dealer account 035 Dealer

Revenue141,757
Direct margin50,115
Activity cost53,105
ABC profit-2,990 (-2.1%)
Traditional profit18,109

hidden loser Traditional costing assigns 32,006 of overhead from 1,144 labour hours; ABC assigns 53,105.

Profit waterfall

-50,000050,000100,000150,000 Revenue: 141,757 141,757 RevenueDirect cost: -91,642 -91,642 Direct costDirect margin: 50,115 50,115 Direct marginEngineering changes: -14,126 -14,126 Engineering changesSetups: -9,171 -9,171 SetupsMachine run: -5,785 -5,785 Machine runQuality inspection: -5,647 -5,647 Quality inspectionDelivery: -5,018 -5,018 DeliveryHand assembly: -3,498 -3,498 Hand assemblyOther activities: -9,861 -9,861 Other activitiesProfit: -2,990 -2,990 Profit

Activity costs

ActivityCostShare
Engineering changes14,12627%
Setups9,17117%
Machine run5,78511%
Quality inspection5,64711%
Delivery5,0189%
Hand assembly3,4987%
Custom finishing2,5395%
Order processing2,3264%
Pallet handling2,3004%
Customer support1,7983%
Credit and collections5971%
Returns handling3021%