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Elle Mosk, CEO of X Space Industries, decided to expand the company's product offering beyond the core model rocket business After Investigation, she decided to set up a separate division to design and manufacture products for the drone market. Several companies were interested in having X-Space develop these drones, and financial results, to date, have been encouraging Revenue was $4 million, gross margins have been running about 40%, and the customer sales and support costs were $1 million. However, there is a growing concern that some customers require a disproportionate share of the sales and support resources, and the true profitability of the customers is unknown. Data were collected to support an analysis of customer profitability Activity Sales visits Product modifications Phone calls E-mail/electronic communications Cost Driver Sales visit days Number of modifications Number of minutes Number of communications Total Cost $ 480,000 266,880 92.600 168,000 $1,006,603 Visit Days Customer Modifications Revenue $ 394, Bee 494,000 594,000 1.060.000 1.440,000 $3,982,000 Gross Profit $ 144,000 194,000 224.000 414,000 584,000 $1.550.000 Phone Minutes 1,090 1.180 1,430 1.780 Electronic Communications 625 875 1.060 2.060 2.31 6,938 199 2,180 Totals 7,660 Required: 1. Management felt the easiest way to allocate the sales and support costs was based on the total revenue. Using total revenue as the allocation base, determine the profitability of each of the five customers 2. Management felt that because the data revealed some customers require a disproportionate share of sales and support resources, activity-based costing should be used to determine customer profitability. Use ABC to prepare a customer profitability analysis Required: 1. Management felt the easiest way to allocate the sales and support costs was based on the total revenue. Using total revenue allocation base, determine the profitability of each of the five customers. 2. Management felt that because the data revealed some customers require a disproportionate share of sales and support resd activity-based costing should be used to determine customer profitability. Use ABC to prepare a customer profitability analysis Complete this question by entering your answers in the tabs below. Required 1 Required 2 Management felt the easiest way to allocate the sales and support costs was based on the total revenue. Using total revenue as the allocation base, determine the profitability of each of the five customers. (Round your intermediate calculations and final answers to 2 decimal places.) Customer Profit After Support Costs Profit Share of Support Costs Gross Profit Based on Revenue $ 144,000 194.000 224,000 414.000 584,000 $ 1,560,000 D Totals Required 2 > Required: 1. Management felt the easiest way to allocate the sales and support costs was based on the total revenue. Using total revenue as the allocation base, determine the profitability of each of the five customers. 2. Management felt that because the data revealed some customers require a disproportionate share of sales and support resources, activity-based costing should be used to determine customer profitability. Use ABC to prepare a customer profitability analysis Complete this question by entering your answers in the tabs below. Required 1 Required 2 Management felt that because the data revealed some customers require a disproportionate share of sales and support resources, activity-based costing should be used to determine customer profitability. Use ABC to prepare a customer profitability analysis. (Round your intermediate calculations and final answers to 2 decimal places.) Customer Gross Profit ABC Costs Net Profit After Support Costs Net Profit $ 144 000 1940001 224 0001 414 000 584,000 1550 000 Total S