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C046 Dealer account 046 Dealer

Revenue83,017
Direct margin28,466
Activity cost24,916
ABC profit3,550 (4.3%)
Traditional profit11,234

subsidised Traditional costing assigns 17,232 of overhead from 616 labour hours; ABC assigns 24,916.

Profit waterfall

020,00040,00060,00080,000100,000 Revenue: 83,017 83,017 RevenueDirect cost: -54,551 -54,551 Direct costDirect margin: 28,466 28,466 Direct marginDelivery: -4,790 -4,790 DeliveryMachine run: -3,431 -3,431 Machine runSetups: -2,852 -2,852 SetupsEngineering changes: -2,665 -2,665 Engineering changesOrder processing: -2,220 -2,220 Order processingQuality inspection: -2,197 -2,197 Quality inspectionOther activities: -6,762 -6,762 Other activitiesProfit: 3,550 3,550 Profit

Activity costs

ActivityCostShare
Delivery4,79019%
Machine run3,43114%
Setups2,85211%
Engineering changes2,66511%
Order processing2,2209%
Quality inspection2,1979%
Hand assembly1,8838%
Pallet handling1,4146%
Returns handling1,2065%
Customer support8994%
Custom finishing7903%
Credit and collections5692%