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Can anyone help me with this? Thanks 2. You have two representative customers A...

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Accounting

imageCan anyone help me with this? Thanks

2. You have two representative customers A and B. Customer A Customer B Sales volume (units) 100 100 Price $20 $20 Number of orders 4 10 Number of technical support calls 2 7 The variable costs are $10 per unit. From the ABC system, the activity rates are $50 per order and $80 per technical support call. a) Compute the profit margin for each customer. b) One of the customers is unprofitable. What can you do about this customer? 3. Samson Electronics makes 40-inch TVs, a high-volume basic product, and 600-inch TVs, a low- volume specialty product for large commercial spaces. Samson uses a traditional cost allocation with a single cost pool. For each product, is the traditional allocation likely to underestimate or overestimate the true capacity costs? 4. Why does activity-based costing (ABC) yield much more accurate estimates of capacity costs than a traditional cost allocation

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