2 parts only

Ellie 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 5492,000 276,000 93,600 178,000 $1,839,600 Customer Visit Days Modifications Revenue $ 406,000 506,000 606,000 1,160,000 1,560,000 14,218.000 Gross Profit $ 156,000 206,000 236,000 426,000 596,000 $1,620,000 Phone Minutes 1,190 1.280 1,530 1,000 2,280 5. 160 Electronic Communications 525 375 1. 160 2,160 2.410 7.230 Totals 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 2 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 revenu as the allocation base, determine the profitability of each of the five customers. (Round your intermedi final answers to 2 decimal places.) Customer Gross Profit Share of Support Costs Based on Revenue Profit After Support Costs Profit % 156.000 206,000 236.000 426,000 596.000 1.620,000 s $ Totals $ Required 2 > 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 sa resources, activity-based costing should be used to determine customer profitability. Use ABC to prepar profitability analysis. (Round your intermediate calculations and final answers to 2 decimal places.) ABC Costs Net Profit After Support Costs Net Profit % Customer Gross Profit As 156,000 206,000 236.000 426,000 E $ 596,000 Totals $ 1,620.000 D S $ 0.00 $ 0.00 (Required 1