This year, Lambert Company will ship 1,500,000 pounds of goods to customers at a cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 of revenue (total revenue is $20 million), the amount of shipping cost assigned to the customer by using ABC would be
a. unable to be determined.
b. $8,000 ($0.80 per pound shipped).
c. $24,000 (2 percent of the shipping cost).
d. $12,000 (1 percent of the shipping cost).
e. none of these.
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