Refer to the information given in the preceding problem for Fresno Fiber Optics and two of its customers, Trace Telecom and Caltex Computer. Additional information for six of Fresno’s other customers for the most recent year follows:

Required:
1. Prepare Fresno Fiber Optics’ customer profitability profile for the most recent year.
2. As Fresno Fiber Optics’ director of cost management, write a memo to the company’s vice president of marketing that will accompany the customer profitability profile. Include a brief explanation of the methodology used and comment on the results.

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Customer Golden Gate Service Associates Tele-Install, Inc....... Graydon Computer Company Mid-State Computing Company Network-All, Inc. The California Group Operating Income $71,000 (18,000) 60,000 42,000 93,000 6,000