In the collection department, the bookkeeping cost per order handled is about one rupee. Each customer is mailed a statement at month end. The customers make single month remittances on account.

All salespersons are paid the same salary and each salesperson works with a single class of customer.

Required

a statement showing allocation of the distribution costs of southern territory to the three classes of customers. Indicate the base or bases on which each allocation is made. (round off all computations suitably).