This year, Lambert Company will ship (1,500,000) pounds of goods to customers at a cost of ($
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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 \(\mathrm{ABC}\) would be
a. Cannot be determined.
b. \(\$ 24,000\) ( 2 percent of the shipping cost).
c. \(\$ 8,000\) ( \(\$ 0.80\) per pound shipped).
d. \(\$ 12,000\) ( 1 percent of the shipping cost).
e. none of the above.
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Related Book For
Fundamental Cornerstones Of Managerial Accounting
ISBN: 9780333623183
1st Edition
Authors: Dan L. Heitger, Maryanne M. Mowen, Don R. Hansen
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