Please Do not Give image format Allocate manufacturing, ordering, and selling costs to the two customer groups by using an activity-based management (ABM) allocation basis. Calculate the net profit before tax (NPBT) for each customer group using an ABM allocation basis.
Please Do not Give image format Allocate manufacturing, ordering, and selling costs to the two customer groups by using an activity-based management (ABM) allocation basis. Calculate the net profit before tax (NPBT) for each customer group using an ABM allocation basis.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please Do not Give image format
Allocate manufacturing, ordering, and selling costs to the two customer groups by using an activity-based management (ABM) allocation basis. Calculate the net profit before tax (NPBT) for each customer group using an ABM allocation basis.

Transcribed Image Text:Table 2: Data from process activity analysis using ABM for the year ended 31 March 2023
Large national Independent
Total
small retailer
Flat-pack units sold
Orders placed
Number of sales and administrative calls or emails
Selling price per shelving per flat-pack
Manufacturing costs
Order filling costs
Salesforce and administrative costs
retailers
customers
84,000
150
150
$125
$4,200,000
$3,000
$15,000
customers
16,000
400
360
$210
$800,000
$8,000
$36,000
100,000
550
510
$5,000,000
$11,000
$51,000
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