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

Question

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

Quizplus · Accepted Answer

The Answer of 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