Customer Decision. Gannon Services, Inc., has two customers. Hansen Company generates $$150,000$ in

income after direct fixed costs are deducted, and Selano Company generates $$200,000$ in income after

direct fixed costs are deducted. Allocated fixed costs total $$300,000$ and are assigned $30$ percent to Hansen

and $70$ percent to Selano based on several different cost drivers. Total allocated fixed costs remain the

same regardless of how these costs are assigned to customers.

Calculate the amount of allocated fixed costs to be assigned to each customer, and determine the profit

or loss for each customer. Should Gannon Services, Inc., drop Selano Company? Explain.