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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 $15,000
Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $15,000 for sales support should be assigned to the individual customers from the information given as follows: Units purchased Purchase orders (annual) Customer A 150,000 Customer B 250,000 8 32 What is the amount of the sales support costs that should be allocated to Customer A, assuming Fence uses purchases orders to compute activity-based costs? Multiple Choice $3,000. $5,625. $9,375. $12,000.
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