(1) Sales visits Activity (2) Product adjustments (3) Phone and email contacts Activity Cost Driver Number of visit days Number of adjustments Number of calls/contacts (4) Promotion and entertainment events Number of events Cost per unit of Activity $1,400 $1,200 $200 1,600 Financial and activity data on the five customers follows (Sales and Gross Profit data in millions): Quantity of Sales and Support Activity Customer Sales Gross Profit (1) (2) (3) (4) #1 $17 $3.4 106 23 220 82 #2 12 2.4 130 36 354 66 #3 3 0.6 52 10 180 74 #4 4 0.8 34 6 138 18 #5 3 0.6 16 5 104 10 $39 $7.8 338 80 996 250 In addition to the above, the sales staff used the corporate jet at a cost of $800 per hour for trips to customers as follows: Customer #31 Customer #2 Customer #3 Customer #4 Customer #5 24 hours 36 hours 5 hours O hours 6 hours The total cost of operating the airplane is included in general and administrative expense; none is included in selling and customer support costs. 23456 7 Sales 8 Cost of Goods Sold 9 Gross Profit 10 Less Activity Expense Allocations 11 Activity 1 12 Activity 2 13 14 Activity 10 15 Total Activity Expense Allocations Customer Profitability (before allocation of 16 common costs) 17 Allocation of Common Costs (Calculate % here) 18 Customer A 19 Customer B (Calculate % here) 20 (Calculate % here) 21 Customer Z (Calculate % here) 22 Net Customer Profitability 23 Net Customer Return on Sales 27 COMPANY NAME Customer Profitability Analysis For the Period Ending XXX ($000) Customer A Customer B Customer Z Total