21 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 0/11 points awarded Scored 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 $ 482.ee 264,000 92,400 166 800 $1,004,480 Customer A Visit Days c D Revenue $ 396,000 496,000 596,000 1,648,000 1,460,000 $3,988,000 Gross Profit $ 146,000 196,000 226,000 416,609 586,000 $1,570,000 15 25 40 90 100 Modifications 15 15 40 60 70 Phone Minutes 1,070 1,168 1,418 1,760 2,160 7,560 Electronic Communications 625 875 1,840 2,048 2), 290 6,870 Totals 27e 200 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 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 Gross Profit Share of Support Costs Based on Revenue Profit After Support Costs Profit A B c. 5 146 000 196.000 225 000 416,000 $ 586,000 $ 1,570,000 x% X% % % % D x E Totals 0.00 5 0.00 Required 2 "text indicate nose was eeted celor a forbud calculation is incorrectne porte deducted