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Question 1: Managing Customers [15 marks] Question 1.1 Custom Course Packets has hired you to calculate the profitability of its three customer types. Here are the revenues and directly traceable costs for each customer type: Individual Corporate University Total Customers Customers Customers $600,000 $750,000 $700,000 $2,050,000 m $450,000 $562,500 $525,000 $1,537,500 In addition, there are $130,000 in costs that cannot be directly traced to the customer types. You have decided to use activity-based costing to allocate the costs to each customer type. Here are the estimated' cost pools (along with the respective activity measures) for the company as a whole: m 1_ Below are the actual activity levels for each customer type: Individual Customers Corporate Customers University Customers 30.000 15.000 13.000 No. of product designs No. of customer complaints Required: Question 1.1.1 Prepare a customer profitability analysis for each customer group and comment on their relative profitability. [Word limit for later part: 100 words. Note the word count at the end of your answer] (6 marks) Question 1.1.2 Would you recommend dropping the customer group that generate the lowest profit? Explain your answer. [Word limit: 100 words. Note the word count at the end of your answer] (3 marks) \"Individual customer satisfaction does not necessarily lead to customer profitability. Moreover, there are many other factors that may assist in understanding and managing the firms' customers.\" Explain the statement. [Word limit: 200 words. Note the word count at the end of your answer] (6 marks)