2 4 5 Kingston Company produces precision components. Kingston has 11 customers, one of which accounts for 60 percent of the sales, with the remaining ten accounting for the rest of the sales. The ten smaller customers purchase components in roughly equal 3 One Large Ten Small Customer Customers Units purchased 300.000 200,000 6 Orders placed 12 420 432 7 calls 20 230 250 Manufacturing cost $ 900,000 $ 600,000 Sales $1,800,000 $ 1,200,000 10 11 Order-filling costs for Kingston Company total $360,000, and sales-force costs are $300,000. 12 000 + 9 13 a. Determine the profitability of each of the two classes of customers (large and small). Allocate the order- 14 filling and sales force costs to the customers based on sales volume. 15 16 Large Ten Small Total 17 Sales Manufacturing 18 costs 19 Order-filling costs Sales-force costs Profit 20 21 22 23 Determine the profitability of each of the two classes of customers [large and small]. Allocate the order-filling and sales force costs to the customers using an activity-based 24 costino annroach 25 Don't round intermediate calculations! 26 27 Large Ten Small Total 28 Sales 29 costs 30 Order-Filling costs 31 Sales-force costs 32 Profit 33 Comment on the differences between the costs of customer types using sales 34 volume vs ABC costing to allocate costs. 35 36