What is the amount of the sales support costs

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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 $12,000 for sales support should be assigned to the individual customers from the information given as follows:

                                                   Customer A                Customer B

Units purchased                        100,000                   200,000

Purchase orders (annual)                    5                          20

Problem 1: 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?

Reference no: EM132815680

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