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Ernie Company Makes Three Types of Products

Question 39

Multiple Choice

Ernie Company makes three types of products.The company has two types of customers.The cost to serve all customers is $12,000 and is allocated to customer types based on the number of manager visits to customer locations.The following data are available: Ernie Company makes three types of products.The company has two types of customers.The cost to serve all customers is $12,000 and is allocated to customer types based on the number of manager visits to customer locations.The following data are available: What is the cost to serve for Customer Type 1? A) $2,400 B) $6,000 C) $9,600 D) $12,000 Ernie Company makes three types of products.The company has two types of customers.The cost to serve all customers is $12,000 and is allocated to customer types based on the number of manager visits to customer locations.The following data are available: What is the cost to serve for Customer Type 1? A) $2,400 B) $6,000 C) $9,600 D) $12,000 What is the cost to serve for Customer Type 1?


A) $2,400
B) $6,000
C) $9,600
D) $12,000

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