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Question Content Area Last year, Stevita Inc. shipped 3,000,000 kilograms of goods to customers. Shipping costs are based on kilograms of goods shipped. Stevita incurred
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Last year, Stevita Inc. shipped 3,000,000 kilograms of goods to customers. Shipping costs are based on kilograms of goods shipped. Stevita incurred $2,400,000 in shipping costs this year. If an individual customer orders 20,000 kilograms and produces $400,000 of revenue (total revenue is $40 million), the amount of shipping cost assigned to the customer using activity-based costing would be:
a.$24,000.
b.$60,000.
c.$16,000.
d.$8,000.
e.$4,000.
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