21 May WHICH TYPE OF CUSTOMER SHOULD THE COMPANY SUPPORT AND WHY?
. Calculate the customer support and distribution costs associated with the three types of customers.
Use a simple strategy first and allocate the costs based on revenues.
Recalculate the allocations using activity based costing (ABC).
2. Determine contribution margin less customer support and distribution costs for both approaches above.
3. Which type of customer should the company support and why? Refer to your analysis in your response.
Modular Case Assignment Expectations:
The submission should be 2 to 4 pages and need to include computations in good format as well as a discussion interpreting the analysis. Answer all questions and include references in APA format.
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