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August Heating and Cooling has allocated selling and administrative expense to two major customers using activity-based costing as below: Architect Design, Inc. Campbell Plumbing Sales

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August Heating and Cooling has allocated selling and administrative expense to two major customers using activity-based costing as below: Architect Design, Inc. Campbell Plumbing Sales order processing $ 6,000 $ 8,000 5,000 Advertising support 7.000 August Heating and Cooling charges its customers $10,000 for a unit that costs the company $7,000 to manufacture. August Heating and Cooling sold 6 refrigeration units to Architect Design, Inc. and 4 to Campbell Plumbing. A customer profitability report for August Heating and Cooling will report O a profit of $47,000 on sales to Architect Design, Inc. O a loss of $1,000 on sales to Campbell Plumbing. O a profit of $17,000 on sales to Campbell Plumbing. a loss of $5,000 on sales to Architect Design, Inc

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