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Question 10.3: A company with three different product lines, X, Y and Z, se...

A company with three different product lines, X, Y and Z, selling for £6, £5 and £4 each
respectively, incurs a £9,000 advertising cost to get the company’s name publicised.
Unit sales of the products are in the proportions X 25%, Y 35% and Z 40%, and annual
turnover is £242,500, split X £75,000, Y £87,500 and Z £80,000. Which of the following
ratios would be a reasonable basis for reapportionment of the advertising cost?
(a) 6:5:4
(b) 25:35:40
(c) 75:87.5:80

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