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Continuing with the previous problem - Yang Corp. sells its products at $ 5 0 per unit and the firm's gross margin ratio is 4
Continuing with the previous problem Yang Corp. sells its products at $ per unit and
the firm's gross margin ratio is of revenues. Yang currently allocates indirect costs to customers
at a rate of of Customer Revenue.
Yang's operating information is as follows:
a Using an Income Statement format, calculate Operating Income for customers Huang and Luang
using the ABC allocation method.
b Compare the Operating Income calculated in this problem and the previous problem. What is
misleading management decision making regarding Huang using the current allocation method?ontinuing with the previous problem Yang corp sells it's products at $ per unit and the firm's gross margin ration is of revenue
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