Customer Profitability Analysis Gonalong, Inc. has 10 customers that account for all of its $4,520,000 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:

Customer	#1	$366,000
	#2	614,000
	#3	(247,000)
	#4	999,000
	#5	1,060,000
	#6	882,000
	#7	598,000
	#8	292,000
	#9	(105,000)
	#10	711,000
Total		$5,170,000

Prepare a customer profitability profile like the one in Exhibit 6.3. 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 $Answer

(ii) Calculate the total profits for the 5 most profitable customers $Answer (iii) Calculate the total profits for the 8 most profitable customers $Answer (iv) Calculate the total profits for the 9 most profitable customers $Answer