Actually, a full cost allocation can be achieved by using a variable cost charge that leads to approximately full utilization and a lump sum charge…

Actually, a full cost allocation can be achieved by using a variable cost charge that leads to approximately full utilization and a lump sum charge for the remainder of total cost. Summary A company finds that it is receiving fewer large orders for electronic testing instruments that are relatively simple to produce–customers are saying the company is not price competitive for such products. On the other hand, the company is receiving more small orders for complex instruments and customers seem happy with the prices they pay for them. Questions to ask students 1. What”s the situation facing QuantumTM?