Last Year, Stevita Inc

Multiple Choice

Last year, Stevita Inc.shipped 3,000,000 kilograms of goods to customers at a cost of $2,400,000.If an individual customer orders 20,000 kilograms and produces $400,000 of revenue (total revenue is $40 million) , the amount of shipping cost assigned to the customer using activity-based costing would be

A) $16,000.
B) $8,000.
C) $24,000.
D) $4,000.
E) $60,000.