(SOLVED) All Texts and Stationery Ltd ATS is a major provider


Question Description:

$20

All Texts and Stationery Ltd (ATS) is a major provider of texts and stationery to secondary schools throughout South Australia. Students submit their order to MS through their school at the beginning °f the year. All Texts and Stationery fills the order in three stages:
(a) An order is received from the school and entered into the ATS inventory order system.
(b) The books and stationery required to fill the order are taken from inventory, packed and dispatched to the student.
(c) Payment is received from the student and processed.
The costs of these three processes in the year just ended are listed below:
During the year, ATS processed 22,000 student orders.
Required:
1. Calculate the cost per order for each process.
2. Calculate the total cost per order.
3. Does the total cost per order provide a reliable estimate of the costs incurred to process each order? Explain your answer.

Answer

$20