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Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $24,500 for

Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $24,500 for sales support should be assigned to the individual customers from the information given as follows:

Units purchased Purchase orders (annual)

Customer A 195,000 8

Customer B 295,000 32


What is the amount of the sales support costs that should be allocated to Customer B, assuming Fence uses purchases orders to compute activity-based costs?


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