U Group Ltd has three departments, Brunch, Lunch and Dinner, results for the trading departments for

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U Group Ltd has three departments, Brunch, Lunch and Dinner, results for the trading departments for the year ending 30 June 2020 are as follows: Brunch N$ Lunch N$ Dinner N$ Total Sales 21,000 11,250 44,000 76,250 Cost of Goods Sold 6,300 3,750 17,600 27,650 Other Costs 13,025 8,250 11,470 32,745 Profit/Loss 1,675 (750) 14,930 15,855 Average inventory held 1,475 950 2,550 Target inventory turn 4 times 3 times 5 times The Costs in the financial year are made up as follows: N$ Number of employees Sales staff salaries 6,644 12 Consultation staff salaries 2,496 4 Warehouse staff wages 3,055 6

U Group Ltd has three departments, Brunch, Lunch and Dinner, results for the trading departments for the year ending 30 June 2020 are as follows: Brunch N$ Lunch N$ Dinner N$ Total Sales 21,000 11,250 44,000 76,250 Cost of Goods Sold 6,300 3,750 17,600 27,650 Other Costs 13,025 8,250 11,470 32,745 Profit/Loss 1,675 (750) 14,930 15,855 Average inventory held 1,475 950 2,550 Target inventory turn 4 times 3 times 5 times The Costs in the financial year are made up as follows: N$ Number of employees Sales staff salaries 6,644 12 Consultation staff salaries 2,496 4 Warehouse staff wages 3,055 6 Administrative staff salaries 3,050 4 General overheads (Electricity, rates,etc) 17,500 32,745 Salaries, wages and general overheads are considered to be of a fixed nature, except for 30% of general overheads which vary with the total cost of sales. U Group has collected the following information for the financial year: Brunch Lunch Dinner Number of items sold 1,000 1,500 4,000 Customer purchase orders 1,000 900 2,500 Floor area (square metres) 16,400 10,000 14,400 Number of consultations 798 200 250 The following pairing of cost drivers to cost pools has been suggested by Mr. Kandetu ( a competent consultant): Activity Driver Sales staff salaries Customer purchase orders Consultant staff salaries Number of consultants Warehouse staff wages Items sold Administrative staff salaries Customer purchase orders plus consultants General overheads Floor space What is the total contribution for the Lunch Department? Select one: a. N$9 000 b. N$6 788 c. N$8 788 d. None of all e. N$7 000 Clear my choice

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