15-20 Customer profitability, service company. Instant Service (IS) repairs printers and photocopiers for five multisite companies in a tristate area. IS's costs consist of the cost of technicians and equipment that are directly traceable to the customer site and a pool of office overhead. Until recently, IS estimated customer profitability by allocating the office overhead to each customer based on share of revenues. For 2020, IS reported the following results: Home Insert Page Layout Formulas Data Review View B D F G 1 Avery Okie Wizard Grainger Duran Total 2 Revenues $390,000 $300,000 $483,000 $183,000 $318,000 $1,674,000 3 Technician and equipment cost 273,000 262,500 337,500 160,500 267,000 1,300,500 4 Office overhead allocated 47,789 36,760 59,186 22,423 38,967 205,125 5 Operating income $ 69,211 $ 740 $ 86,314 $ 77 $ 12,033 $ 168,375 Abby Costa, IS's new controller, notes that office overhead is more than 10% of total costs, so she spends a couple of weeks analyzing the consumption of office overhead resources by customers. She collects the following information: Home Insert Page Layout Formulas Data Review I ) K 1 Activity Area Cost Driver Rate 2 Service call handling $85 per service call 3 Parts ordering $80 per Web-based parts order 4 Billing and collection $50 per bill (or reminder) Home Insert Page Layout Data Review 00 8 9 Number of service calls 10 Number of Web-based parts orders 11 Number of bills (or reminders) Formulas B C Avery Okie 225 360 180 315 45 135 D E Wizard Grainger 60 180 90 225 135 90 225 180 1. Compute customer-level operating income using the new information that Costa has gathered. 2. Prepare exhibits for IS similar to Exhibits 15-4 and 15-5. Comment on the results. 3. What options should I consider, with regard to individual customers, in light of the new data and analysis of office overhead