What is the amount of the sales support costs

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Question - 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

Required - 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: EM132860952

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