Analysis Rogers Aeronautics, LTD, Is A British Aeronautics Subcontract ... Question: Customer Profitability Analysis Rogers Aeronautics, LTD, is a British aeronautics su... Customer Profitability Analysis Rogers Aeronautics, LTD, is a British aeronautics subcontract company that designs and manufactures electronic control systems for commercial airlines. The vast majority of all commercial aircraft are manufactured by Boeing in the U.S. and Airbus in Europe; however, there is a relatively small group of companies that manufacture narrow-body commercial jets. Assume for this exercise that Rogers does contract work for the two major manufacturers plus three companies in the second tier. Because competition is intense in the industry, Rogers has always operated on a fairly thin 20% gross profit margin; hence, it is crucial that it manage non-manufacturing overhead costs effectively in order to achieve an acceptable net profit margin. With declining profit margins in recent years, Rogers Aeronautics' CEO, Len Rogers, has become concerned that the cost of obtaining contracts and maintaining relations with its five major customers may be getting out of hand. You have been hired to conduct a customer profitability analysis. Rogers Aeronautics' non-manufacturing overhead consists of $2.5 million of general and administrative (G&A) expense, (including, among other expenses, the CEO's salary and bonus and the cost of operating the company's corporate jet) and selling and customer support expenses of $3 million (including 5% sales commissions and $1,050,000 of additional costs). The accounting staff determined that the $1,050,000 of additional selling and customer support expenses related to the following four activity cost pools:

a. Prepare a customer profitability analysis for Rogers Aeronautics that shows the gross profits less all expenses that can reasonably be assigned to the five customers. Enter figures as complete numbers (with all zeros). For example, 1 million is 1,000,000. Do not use negative signs with any answers. Round return on sales to one decimal place. (Ex: 10.4%) Customer #1 Customer #2 Customer #3 Customer #4 Customer #5 Sales 19,000,00I X 14,000,00 X 5,000,000 X 6,000,000 X 5,000,000 X 15.200,00 11,200,00 4,000,000 4,800,000 4,000,000X Cost of goods sold Gross profit Less expenses 3,800,000 X 2,800,000X 1,000,000 X 1,200,000x 1,000,000x Sales commissions 950,000 X 700,000 X 250,000 X 300,000 X 250,000X Sales visits 127,200 0,800 19,200 62,400 15,000 27,000 56,000 Product adjustments 34,500 54,000 9,000 7,500 Phone and other remote contacts 33,000 53,100 20,700 15,600 Promotion and entertainment 123,000 99,000 111,000 27,000 5,000 Corporate jet expense 19,200 28,800 4,000 4,800 Customer profitability 2,513,100 x 1,709,100 X469,400 397,500 X312,100X Customer return on sales 13.2 x % 12.2 % 10.6 x % 13.4 x 96 13.8 x% a. Prepare a customer profitability analysis for Rogers Aeronautics that shows the gross profits less all expenses that can reasonably be assigned to the five customers. Enter figures as complete numbers (with all zeros). For example, 1 million is 1,000,000. Do not use negative signs with any answers. Round return on sales to one decimal place. (Ex: 10.4%) Customer #1 Customer #2 Customer #3 Customer #4 Customer #5 Sales 19,000,00I X 14,000,00 X 5,000,000 X 6,000,000 X 5,000,000 X 15.200,00 11,200,00 4,000,000 4,800,000 4,000,000X Cost of goods sold Gross profit Less expenses 3,800,000 X 2,800,000X 1,000,000 X 1,200,000x 1,000,000x Sales commissions 950,000 X 700,000 X 250,000 X 300,000 X 250,000X Sales visits 127,200 0,800 19,200 62,400 15,000 27,000 56,000 Product adjustments 34,500 54,000 9,000 7,500 Phone and other remote contacts 33,000 53,100 20,700 15,600 Promotion and entertainment 123,000 99,000 111,000 27,000 5,000 Corporate jet expense 19,200 28,800 4,000 4,800 Customer profitability 2,513,100 x 1,709,100 X469,400 397,500 X312,100X Customer return on sales 13.2 x % 12.2 % 10.6 x % 13.4 x 96 13.8 x%