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Cost allocation Product 1 Product 2 Product 3 Sales $5,000 $6,000 $30,000 Cost of goods sold 4,000 4,800 15,000 Gross margin $1,000 $1,200 $15,000 Customer

Cost allocation

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Product 1 Product 2 Product 3 Sales $5,000 $6,000 $30,000 Cost of goods sold 4,000 4,800 15,000 Gross margin $1,000 $1,200 $15,000 Customer Type 1 Customer Type 2 Product 1 Sales $500 $4,500 Product 2 Sales $1,000 $5,000 Product 3 Sales $16,000 $14,000 Manager visits 4 16 What is the operating income for all three products for Customer Type 1? O A. $5,850 O B. $9,600 O C. $5,900 O D. $2,400

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