=+10 Selling and customer-service capacity cost per customer (row 9 ÷ row 8) $500 $550 Conversion costs in each year depend on production capacity defined in terms of units of Mini that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that CPAL can support, not the actual number of customers it serves. CPAL has 70 customers in 2014 and 80 customers in 2015.

Required 1 Calculate the operating profit of CPAL Ltd for 2014 and 2015.