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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                          110,000                 200,000                      

Purchase orders (annual)                5                            20

What is the amount of the sales support costs that should be allocated to Customer B, assuming Fence uses units purchased to compute activity-based costs?

Reference no: EM133007195

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