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Assume a company's activity-based costing system includes three activities with the following activity rates. Activity Cost Pool Travel Deliveries Customer service Activity Rate $2
Assume a company's activity-based costing system includes three activities with the following activity rates. Activity Cost Pool Travel Deliveries Customer service Activity Rate $2 per mile driven $50 per delivery $22 per phone call Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Travel (number of miles driven) Deliveries (number of deliveries) Customer service (number of phone calls) Total Expected Activity Customer A Customer B 300 250 15 5 20 12 If the company earned $2.300 in revenue serving Customer A, then what is the customer margin for this customer?
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