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! Activity-Based Costing and Customer Profitablity Metroid Electric manufactures power distribution equipment for commerelal customers, such as hospitals and manufocturers, Activity-based costing was uted to
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Activity-Based Costing and Customer Profitablity Metroid Electric manufactures power distribution equipment for commerelal customers, such as hospitals and manufocturers, Activity-based costing was uted to determine customer profitabality. Customer service activities were assigned to individual customers, using the following assumed customier serrice activities, activity base, and activity rate: Assume that the company had the following gross profit information for thiee representative customers: The administrative records indicated that the activity-base usage quantitea for each customer were as foliows: a. Prepare a customer profltabiliby report dated for the year ended December 31, 20yB; showing (t) the operating income after customier service activiefy (2) the gross profit as a percent of sales, and (3) the operating income after customer service activities as a percent of sales, Propare the repert with a colimn for each customer, Round percentages to the nearest whole percent Step by Step Solution
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