Fresno Fiber Optics, Inc. manufactures fiber optic cables for the computer and telecommunications industries. At the request of the company vice president of marketing, the cost management staff has recently completed a customer-profitability study. The following activity-based costing information was the basis for the analysis.

Cost-driver data for two of Fresno's customers for the most recent year are

The following additional information has been compiled for Fresno Fiber Optics for two of its customers, Trace Telecom and Caltex Computer, for the most recent year:

Required:
Prepare a customer profitability analysis for Trace Telecom and Caltex Computer.

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Customer-Related Activities Sales activity Order taking. Cost Driver Base Sales viit Purchase orders Units handle. Shipments Cost Driver Rate $1,000 200 50 500 Special shipping Customer-Related Activities Sales activity Order taking Special handling Special shipping Trace Telecom Caltex Computer 6 visits 20 orders 15 orders 800 units handled 600 units handled 18 shipments 20 shipments Trace Telecom Caltex Computer Sales revenue Cost of goods sold. General selling costs. General administrative costs 80,000 24,000 9,000... $123,800 62,000 18,000 16,000 1