Customer profitability analysis. Tools.com makes custom tools for three customers, Larry, Curly, and Moe. The following is Tools. corn's income statement for the most recent year.

In reviewing each customer, Tools.com noticed that each made up the following per- centages of Tools.com's Total Revenue, Cost of Goods Sold, and Marketing and Ad- ministrative Costs.

a. Prepare income statements for each customer.

b. If you were the marketing manager for Tools.com, and had reviewed the income statements for each customer, what would you do?

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TOOLS.COM Income Statement for the Most Recent Year Ended December 31 Sales Revenue Cost of Goods Sold Gross Margin Marketing and Administrative Costs Operating Profit $200,000 120,000 $ 80,000 35,000 $ 45,000