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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 $13,500 for
Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $13,500 for sales support should be assigned to the individual customers from the information given as follows: Units purchased Purchase orders (annual) Multiple Choice O What is the amount of the sales support costs that should be allocated to Customer A, assuming Fence uses units purchased to compute activity-based costs? $2,700. $5,250. $8,250. Customer A Customer B 175,000 275,000 $10,800. 6 24
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