Figure 7-2

Multiple Choice

Figure 7-2.Steller Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are found below:

-Refer to Figure 7-2. Calculate the activity rate for processing sales orders.

A) $330.09 per order
B) $525 per order
C) $275.76 per order
D) $352.94 per order
E) $342.43 per order