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5. ABC Company has implemented activity based costing to estimate its customer-service costs. Both customers buy 80 units a month at $15 per unit. The

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5. ABC Company has implemented activity based costing to estimate its customer-service costs. Both customers buy 80 units a month at $15 per unit. The variable cost is $5 per unit. What is the profit margin of Customer A? Customer B Allocation Rate $120/order Customer A Number of orders Number of tech support calls Product handling 3orders 2 calls 6 orders 10 calls 40/calls $2/unit 40 units 20 units A. $280 B. $520 C. $680 D. $800 (Questions 6-3) The following table represents Beta Company's production budget. Beta's inventory Policy?sto haveendinginventorvequal to15% of next month's sales. June Desired ending inventory? 6007 Badgeted sales 4,800 8,000 6 Based on the information above, what is the desired ending inventory in May? A. 720 B. 820 C.900 D. 1,200 7. Based on the information above, what is budgeted production in May? A. 5,800 B. 5,880 C. 5,980 D. 6,120 8. Based on the information above, what is the beginning inventory in July? A. 400 B. 800 C. 1,200 D. 1,600

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