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4 . Provencer Electronics, a division of Bolton Corporation, manufacturers two large - screen television models: the Mammoth, which has been produced since 2 0
Provencer Electronics, a division of Bolton Corporation, manufacturers two largescreen television models: the Mammoth, which has been produced since and sells for $ and the Maximum, a newer model introduced in early that sells for $
Requirement Using activitybased costing, calculate the gross margin per unit of the Maximum and Mammoth models. Begin by calculating the total cost of goods sold for each model.
Requirement Explain briefly why these numbers differ from the gross margin per unit of the Maximum and Mammoth models calculated using Provencers existing simple costing system
Requirement Comment on Cambells concern about the accuracy and limitation of ABC
Requirement How might Provencer find the ABC information helpful in managing its business?
Requirement What should Sam Jackson do in response to Cambells comments?
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