Amount of the sales support costs

Reference no: EM13141527

Beta Company 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

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

A. $2,400
B. $4,000
C. $8,000
D. $9,600

Reference no: EM13141527

Questions Cloud

Controlling interest in consolidates net income : On jan 1 2011 pearce com purchased an 80% interest in the capital stock of searl com for 2460000. at the time searl co had capital stock of 1500000 amd retaines earnings of 300000. Calculate the controlling interest in consolidates net income for 2..

Treatment on the bank reconciliation : If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company's books for $482, the appropriate treatment on the bank reconciliation would be to:

Explain short- term investments in the current asset section : Assume that the company classified the shares of treasury stock as short- term investments in the current asset section of its balance sheet. Is this appropriate? Explain.

How many different ways can they seat-permutations : Kate, Demi, Madona, Sharon, Britney and Nicole decided to lunch together in a restaurant. The waiter led them to a round table with six chairs. How many different ways can they seat?

Amount of the sales support costs : What is the amount of the sales support costs that should be allocated to Customer A assuming Beta uses units purchased to compute activity-based costs?

Prepare journal entries required to record payment : Prepare the general journal entries required to record the acquisition and payment in each of the independent cases above. Round to the nearest dollar.

Every student at party has same chance to be interviewed : Interview about attitudes toward alcohol. You have given every student at the party the same chance to be interviewed: what is the chance? Why is your sample not an SRS?

Explain telephone channels and pcm analysis : Telephone channels and PCM analysis, The analog to digital converter (ADC) used in a telephone system outputs 8 bit words. The digital words are transmitted as a serial stream to form a PCM voice signal

Calculate the molar solubility of cadmium sulfide : Cadmium ion in solution is analyzed by precipitation as the sulfide, a yellow compound used as a pigment in everything from artists' oil paints to glass and rubber. Calculate the molar solubility of cadmium sulfide at 25?C ?

User Account

All Pages