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Can you please finish the customer profitability report, thanks. Schneider Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing
Can you please finish the customer profitability report, thanks.
Schneider 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 Bid preparation Shipment Support standard items Support nonstandard items Number of nonstandard items ordered $75onstd. Activity Base Number of bid requests Number of shipments Number of standard items ordered Activity Rate $200/request $16/shipment $20/std. item tem Assume that the company had the following gross profit information for three representative customers: 2 Revenue 3Cost of goods sold 4 Gross profit Customer 1 Customer 2 Customer 3 39,000.00 $26,000.00 $31,200.00 4,180.0013,520.00 15,600.00 $14,820.00$12,480.00 $15,600.00 50.0% Gross profit as a percent of sales 38.0% 48.0% The administrative records indicated that the activity-base usage quantities for each customer were as follows: Activity Base Number of bid requests Number of shipments Number of standard items ordered Number of nonstandard items ordered Customer 1 Customer 2 Customer 3 8 24 38 30 12 16 48 18 25 45 56 54Step by Step Solution
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