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.

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:
1. Prepare a customer profitability analysis for Trace Telecom and Caltex Computer. (Hint: Refer to Exhibit 5–13 for guidance.)
2. Build a spreadsheet: Construct an Excel spreadsheet to solve requirement (1) above. Show how the solution will change if the following information changes: Trace Telecom’s sales revenue was $185,000 and Caltex Computer’s cost of goods sold was $59,000.

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Customer-Related Activities Sales activity Order taking Special handling. Special shipping Cost Driver Base Sales visits Purchase orders Units handled Shipments Cost-driver data for two of Fresno's customers for the most recent year are Customer-Related Activities Sales activity.. Order taking Special handling.. Special shipping.. Trace Telecom 8 visits 15 orders... 800 units handled. 18 shipments Cost Driver Rate $1,000 200 50 500 Caltex Computer 6 visits 20 orders 600 units handled 20 shipments