Cambridge Industries collects information on two customers for the fiscal year just ended:

	Langley Supply	Sweeney, Inc.
Revenues	$1,492,000	$640,000
Cost of goods sold	$1,164,000	$486,000
Number of in-stock orders	14	4
Number of out-of-stock orders	12	24

Cambridge estimates the following activity-based costs:

Cost of processing and delivering an in-stock order	$1,200
Cost of processing and delivering an out-of-stock order	$3,500

For an in-stock order, all the items included in the order are in inventory at the time the order is received.

Compute the customer-level operating income of each customer for the fiscal year using:

a. 16% of revenues as the allocation rate for customer-related costs.

b. Activity-based costing.

Template:

a.		Langley	Sweeney
Revenues
Costs:
Cost of goods sold
Customer-related costs, 16% of revenues
Total Costs
Customer-level operating income
b.		Langley	Sweeney
Revenues
Costs:
Cost of goods sold
In-stock costs
Out-of-stock costs
Total Costs
Customer-level operating income