9. Schneider Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was used to determine customer profitability. Customer service activities were assigned to individual customers, using the following assumed customer service activities, activity base, and activity rate: Customer Service Activity Bid preparation Shipment Support standard items Support nonstandard items Activity Base Number of bid requests Number of shipments Number of standard items ordered Number of nonstandard items ordered Activity Rate $400 per request $80 per shipment $25 per standard item $150 per nonstandard item Assume that the company had the following gross profit information for three representative customers: Income Statement Item Revenue Cost of goods sold Gross profit Gross profit as a % of sales Customer 1 $120,000 76,800 43,200 36% Customer 2 $200,000 110,000 90,000 45% Customer 3 $160,000 83,200 76,800 48% The administrative records indicated that the activity-base usage quantities for each customer were as follows: Activity Base Number of bid requests Number of shipments Number of standard items ordered Number of nonstandard items ordered Customer 1 18 30 Customer 2 34 60 30 2228 Customer 3 51 48 50 80 15 5 70 a. Prepare a customer profitability report dated for the year ended December 31, 2020, showing i. the income from operations after customer service activities. ii. the gross profit as a percent of sales. iii. the income from operations after customer service activities as a percent of sales. Prepare the report with a column for each customer. Round percentages to the nearest whole percent. b. Interpret the report in part (a). How well or poorly is the company doing and why