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List the activity drivers to be used for cost allocation

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Product profitability analysis exercise using activity-based costing.

Modern Medical, a medical device manufacturer, produces self-monitoring products for individual home use, such as blood-pressure and blood-sugar monitors.

Question 1) Identify and list the activity drivers (basis) to be used for cost allocation of manufacturing overheads, head office expenses and sales and marketing expenses.

Question 2) Perform a product profitability analysis for Modern Medical.

  • Use the template provided below.
  • Include calculation of the gross margin and net margin for each product and for the organization.
  • Round off all calculations to the nearest rand.
  • Round off percentage calculations to two decimal places.

Reference no: EM132650794

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