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CH 18 4 (Application ) Calculator Print om Construct and interpreta Product Profitability Report, Alocating Selling and Administrative Expenses Naper Inc. manufactures power equipment. Naper

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CH 18 4 (Application ) Calculator Print om Construct and interpreta Product Profitability Report, Alocating Selling and Administrative Expenses Naper Inc. manufactures power equipment. Naper has two primary products-generators and air compressors. The following report was prepared by the controller for Naper's senior marketing management fort Yemended December 31: Air Generators Compressors Total Revenue $1.727.700 $2,265,700 $3,983,400 Cost of goods sold 1,374,160 1,812,560 3,106,720 Gross proti 642540 5453.140 5796,600 Selling and administrative expenses 160,180 Income from operations 1620,500 The marketing management team was at the wing and administrative expenses were not traced to the products Marketing management that some products comune large amounts of a and mitive than others to very, the controller was asked to prepare a complete product probity reporting active conting The controller onurmures that in die res contes of two active sales order processing and post sale customer service. The controller was able to determine the activity base and activity Activity Activity Rate Sales Postal customer service S180 per cervice request The controller determine the formation about each product Get Air Compressor Number of sales orders a. Det er in de customer service Sales Order Process Customer Service Sales Order Processing Post-sale Customer Service Activities Cost Activities Cost Generators Air Compressors Total b. Use the information in (s) to prepare a complete product profitability report duted for the year ended December 31. the gross profitto sales and the income from corations to sales percentages for each product. Round percentages to ore decimal placerat amounts as positive numbers Naper Inc Product Profitability Report For the Year Ended December 31 Generator Air Compressors Total Cost of gold Crossro Sales ander processing Post-sale customer service Total selling and administrative expense Income from corations Gross role as a percentage of sales Income from petons as a percentage of sales

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