Customer profitability analysis: manufacturer Feather Light manufactures optic cables for the telecommunications industry. The cost management staffs have just completed a customer profitability analysis, at the request of the marketing manager. The following information forms the basis for the analysis:

Customer-driven activitiesCost driver Cost driver rate

Cost driver data for two of Feather Light's major customers for the most recent year:
Customer-driven activitiesCaesar Stream Nero Com

The following data relates to those same two customers:
Caeser StreamNero Com

Required:
1. Prepare a customer profitability analysis for CaesarStream and NeroCom.
2. Prepare a customer profitability graph, similar to the one in Exhibit 1514, for the two customers.
3. Comment on the relative profitability of the two customers.
4. Construct an Excel• spreadsheet to solve requirement 1. Show hoe the solution will change if CaesarStream's sales revenue is $125 000 and NeroCom's cost of goods sold is $77 500.

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Sales visits Purchase orders Units handled Shipments Sales activity Order taking Special handling Special shipping $1000 200 50 500 Sales activity Order taking Special handling Special shipping 8 sales visits 15 purchase orders 800 units handled 18 shipments 6 sales visits 20 purchase orders 600 units handled 20 shipments