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AutoSave O Off FE_ACCT6285 - Accounting for Business_2010-converted - Compatibility Mode - Word ANDIKA PRATAMA AP File Home Insert Design Layout References Mailings Review View

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AutoSave O Off FE_ACCT6285 - Accounting for Business_2010-converted - Compatibility Mode - Word ANDIKA PRATAMA AP File Home Insert Design Layout References Mailings Review View Help Share Comments Find * Verdana * 9,5 - A" A Aa Po AaBbCc[ AaBbCcD: AaBbCc[ AaBbCc[ Gc Replace Paste 1 Normal 1 Body Text 1 List Para.. 1 No Spac... Sensitivity Editor BIU abx x ADA. Dictate Select Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor QUESTION 3 [25 MARKS] GoBike Company Inc. produced 2 types of bikes, Le. GoPro and GoHi. GoPro is a simple motorized bike while GoHi is a mountain bike. Mr. Gow, the founder and owner of the company wants you, the business development manager of the company, to decide whether to deliver more services to GoPro or GoHi customers. Mr. Gow asks you to review the case from the standpoint of an Accountant as you have a background in Accounting. The following are the data provided by the company ac countant: Activity Drivers Expected indirect Expected Customer group actual activity activity level costs level GoPro GoHi Ordering stationaries E 500 100 50 50 Designing- parts f 200 20 5 18 adjustments Sponsoring activities E 1,000 10 2 10 Required: 1. Calculate the indirect cost rates of each activity. [6 marks] 2. Use the indirect cost rate above to allocate the indirect costs to each group of customer. [11 marks] 3. Calculate the profit from each customer group If sales for GoPro predicted to be GBP 2,550 and GBP 3,000 for GoHi. [4 marks] 4. Advise Mr. Gow on which customer group that the company must focus. Provide the reason. [4 marks] Page 3 of 4 1232 words x English (United States) Focus + 909% 8:21 Type here to search O A 26/01/2021

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