Customer Profitability Analysis

Gonalong, Inc. has $10$ customers that account for all of its $$4,540,000$ of net income. Its activity$-$based costing system is able to assign all costs, except

for $$650,000$ of general administrative costs, to key activities incurred in connection with serving its customers. A customer profitability analysis based

on activity costing produced the following customer profits and losses:

Prepare a customer profitability profile like the one in Exhibit $6\mathrm{.}3.$ The following link includes an Excel worksheet to create the profitability profile graph:

profitability$\_$profile$\_$template.

Using the customer profitability analysis provided in the exercise to calculate the following profits.

$($i$)$ Calculate the total profits from the $3$ most profitable customers

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$($ii$)$ Calculate the total profits for the $5$ most profitable customers

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$($iii$)$ Calculate the total profits for the $8$ most profitable customers

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$($iv$)$ Calculate the total profits for the $9$ most profitable customers

$