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Beta Company is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $10,800 for
Beta Company is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $10,800 for sales support should be assigned to the individual customers from the information given as follows: |
Customer A | Customer B | |
Units Purchased | 100,000 | 200,000 |
Purchase order (annual) | 12 | 27 |
What is the amount of the sales support costs that should be allocated to Customer A assuming Beta uses units purchased to compute activity-based costs? |
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