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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 $19,500 for
Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $19,500 for sales support should be assigned to the individual customers from the information given as follows:
Customer A Customer B
Units purchased 145,000 245,000
Purchase orders (annual) 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?
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