It is one year later.Both your customers switched to Activity-Based Pricing (ABP) nine months ago.You...
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Accounting
It is one year later.Both your customers switched to Activity-Based Pricing (ABP) nine months ago.You charge each customer what it costs you to provide service, making margin only on distributor discounts.Draft new customer profitability statements for both Alpha Hospital and Beta Hospital using the new activity drivers shown below.What is the cost-plus equivalent of the activity fee each customer is charged?Explain why each customer responded differently to activity-based pricing.
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