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C048 Dealer account 048 Dealer

Revenue55,244
Direct margin18,900
Activity cost17,572
ABC profit1,328 (2.4%)
Traditional profit7,653

subsidised Traditional costing assigns 11,247 of overhead from 402 labour hours; ABC assigns 17,572.

Profit waterfall

020,00040,00060,000 Revenue: 55,244 55,244 RevenueDirect cost: -36,345 -36,345 Direct costDirect margin: 18,900 18,900 Direct marginDelivery: -3,763 -3,763 DeliverySetups: -2,322 -2,322 SetupsMachine run: -2,117 -2,117 Machine runOrder processing: -1,744 -1,744 Order processingCustomer support: -1,498 -1,498 Customer supportQuality inspection: -1,413 -1,413 Quality inspectionOther activities: -4,715 -4,715 Other activitiesProfit: 1,328 1,328 Profit

Activity costs

ActivityCostShare
Delivery3,76321%
Setups2,32213%
Machine run2,11712%
Order processing1,74410%
Customer support1,4989%
Quality inspection1,4138%
Custom finishing1,2467%
Hand assembly1,2297%
Pallet handling7915%
Engineering changes6994%
Credit and collections4473%
Returns handling3022%