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Accounting
Customer A       Customer B    Sales volume (units)   500 500 Price $20 $20 Total number of orders    7 10 Total number of technical support calls   2 3 Your variable cost per unit is $10. Using your ABC system, you determine that each order costs you $50 to process, and each technical support call costs you $20. What is the profit of Customer A? $4,610   $5,000   $10,000   $9,610

Customer A       Customer B    Sales volume (units)   500 500 Price $20 $20 Total number of orders    7 10 Total number of technical support calls   2 3 Your variable cost per unit is $10. Using your ABC system, you determine that each order costs you $50 to process, and each technical support call costs you $20. What is the profit of Customer A? $4,610   $5,000   $10,000   $9,610

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Customer A       Customer B    Sales volume (units)   500 500 Price $20 $20 Total number of orders    7 10 Total number of technical support calls   2 3

Your variable cost per unit is $10. Using your ABC system, you determine that each order costs you $50 to process, and each technical support call costs you $20. What is the profit of Customer A?

  1. $4,610

     

  2. $5,000

     

  3. $10,000

     

  4. $9,610

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