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You work for a transport company called Dimeritium Transport. Dimeritium Transport operates five vehicles with a payload of 5 tons each, and five vehicles with
You work for a transport company called Dimeritium Transport. Dimeritium Transport operates five vehicles with a payload of 5 tons each, and five vehicles with a payload of 2 tons each. The annual overhead costs amount to R 700 000. Calculate the amount of overheads to be allocated to each 2-ton vehicle, using the payload as a criterion for cost allocation.
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