1. Explain the value of a customer-profitability analysis in making management decisions about future operations. Prepare a plan to address potential scenarios of inadequate customer-profitability (i.e. deciding whether to end a customer relationship due to a lack of profitability on their orders or purchases).

2. Compare and contrast the allocation of multiple support departments to a production department utilizing the direct, step down, and reciprocal methods. Illustrate the differences using an original numerical example and explain the implications for management decision-making.