Simon Company makes three types of products.The company has two types of customers.The cost to serve all customers is $12,000 and is allocated to customer types based on the number of manager visits to customer locations.The following data are available: What is the operating profit or loss for all three products for Customer Type 2?
A)$(1,150)
B)$(2,150)
C)$8,450
D)$9,600

Question

Simon Company makes three types of products.The company has two types of customers.The cost to serve all customers is $12,000 and is allocated to customer types based on the number of manager visits to customer locations.The following data are available:   What is the operating profit or loss for all three products for Customer Type 2?
A)$(1,150) 
B)$(2,150) 
C)$8,450 
D)$9,600

Quizplus · Accepted Answer

The Answer of Simon Company makes three types of products.The company has two types of customers.The cost to serve all customers is $12,000 and is allocated to customer types based on the number of manager visits to customer locations.The following data are available:   What is the operating profit or loss for all three products for Customer Type 2?
A)$(1,150) 
B)$(2,150) 
C)$8,450 
D)$9,600

Simon Company Makes Three Types of Products