Activity-Based Costing and Customer Profitability Metrold 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 Activity Base Activity Rate Bid preparation Number of bid requests $420 per request Shipment Number of shipments $90 per shipment Support standard items Number of standard items ordered $30 per std. Item Support nonstandard items Number of nonstandard Items ordered $180 per nonstd. Item Assume that the company had the following gross profit information for three representative customers: Customer 1 Revenues $130,000 Customer 2 Customer 3 $210,000 $180,000 (113,400) (90,000) $96,600 $90,000 (81,900) Cost of goods sold Gross profit Gross profit as a percent of sales $48,100 37% 46% 50% The administrative records indicated that the activity-base usage quantities for each customer were as follows: Customer 1 Customer 2 Customer 3 15 40 60 Activity Base Number of bid rekuests Number of shipments Number of standard items ordered Number of nonstandard items ordered 25 55 50 20 35 52 6 65 85 a. Prepare a customer profitability report dated for the year ended December 31, 2018, showing (1) the operating income after customer service activities, (2) the gross profit as a percent of sales, and (3) the operating income 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. Metroid Electric a. Prepare a customer profitability report dated for the year ended December 31, 20Y8, showing (1) the operating income after customer service activities, (2) the gross profit as a percent of sales, and (3) the operating income 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 Metroid Electric Customer Profitability Report For the Year Ended December 31, 2048 Customer 1 Customer 2 Customer 3 Revenues pod Cost of goods sold Gross profit Customer service activities: Bid preparatio Shipment Support standard items Support nonstandard Items Total customer service activities Operating income after customer service activities % 96 Gross profit as a percent of sales % % % Operating income after customer service activities as a percent of sales