Cold Zone Mechancial Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows:

1 Price per unit $75,000.00

2 Cost of goods sold 60,000.00 3

Gross profit per unit $15,000.00

In addition, the company incurs selling and administrative expenses of $231,880. The company wishes to assign these costs to its three major customers, Good Knowledge University, Hot Shotz Arena, and Break-a-Leg Hospital. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are:

1 Activity Budgeted Activity Cost Activity Base

2 Customer service $83,720.00 Number of service requests

3 Project bidding 61,360.00 Number of bids 4

Cold Zone Mechancial Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows:

1	Price per unit	$75,000.00
2	Cost of goods sold	60,000.00
3	Gross profit per unit	$15,000.00

In addition, the company incurs selling and administrative expenses of $231,880. The company wishes to assign these costs to its three major customers, Good Knowledge University, Hot Shotz Arena, and Break-a-Leg Hospital. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are:

1	Activity	Budgeted Activity Cost	Activity Base
2	Customer service	$83,720.00	Number of service requests
3	Project bidding	61,360.00	Number of bids
4	Engineering support	86,800.00	Number of customer design changes
5	Total costs	$231,880.00

Activity-base usage and unit volume information for the three customers is as follows:

	Good Knowledge	Hot Shotz	Break-a-Leg
	University	Arena	Hospital	Total
Number of service requests	60	52	210	322
Number of bids	36	18	50	104
Number of customer design changes	45	30	142	217
Unit volume	22	14	6	42

USING THESE LABELS PLEASE HELP WITH PUTTING TOGETHER A PROFITABILITY REPORT

Labels
Selling and administrative activities
Cost of goods sold
Customer service
Engineering support
Gross profit
Income from operations
Project bidding
Revenues
Total selling and administrative activities

Cold Zone Mechanical Inc.

Customer Profitability Report