Check my wor Ellie Mosk, CEO of X-Space Industries, decided to expand the company's product offering beyond the core model rocket business. After investigation, she decided to set up a separate division to design and manufacture products for the drone market. Several companies were interested in having X-Space develop these drones, and financial results, to date, have been encouraging. Revenue was $4 million, gross margins have been running about 40%, and the customer sales and support costs were $1 million. However, there is a growing concern that some customers require a disproportionate share of the sales and support resources and the true profitability of the customers is unknown. Data were collected to support an analysis of customer profitability Activity Sales visits Product modifications Phone calls E-mail/electronic communications Cost Driver Sales visit days Number of modifications Number of minutes Number of communications s 485,008 261,000 92,180 $1,001,100 Visit Phone Electronic Customer Revenue S 399,000 499,000 599,000 1,010,000 1,490,000 Gross Profit Days Modifications Minutes Communication 149,000 199,000 229,000 419,000 15 25 40 90 589,009100 270 15 15 40 60 70 200 1,040 1,130 1,380 1,730 2,130 7,410 625 875 1,010 2,e1e 2.260 6,780 Totals $3,997,000 $1,585,000