Customer Customer Customer Activity Base 2 3 Number of bid requests Number of shipments Number of standard tems ordered Number of nonstandard items ordered 14 38 30 60 48 15 30 50 70 80 a. Prepare a customer profitability report dated for the year ended December 31, 20Y8, showing (1) the income from operations after customer service activities, (2) the gross profit as a percent of sales, and (3) the income from operations after customer service activities as a percent of sales. Prepare the report with a column for each customer. Round percentages to the nearest whole percent. Enter all amounts as positive numbers Schneider Electric Customer Profitability Report For the Year Ended December 31, 20Y8 Customer 1 Customer 2 Customer 3 Revenues Cost of goods sold Gross profit Customer service activities: Bid preparation Shipment Support standard items Support nonstandard items Total customer service Income from operations after customer service activities Gross profit as a percent of sales Income from operations after customer service activities as a percent of sales activities b. Interpret the report in part (a) The gross profit as a percent of sales indicated that profitable. After deducting the activity costs associated with customer service activities, profitable, while much more customer service activities than did the other customers. Apparently, that required specialized bid requests. In addition, customer's location, rather than a few large shipments. was the least profitable, while was the most became the least became nearly as profitable as Customer 2. The reason is because consumed ordered nonstandard products required more shipments, indicating smaller shipments to a