Customer Profitability Analysis Gonalong, Inc. has 10 customers that account for all of its $4,510,000 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 $326,000

#2 594,000

#3 (267,000)

#4 999,000

#5 1,040,000

#6 882,000

#7 658,000

#8 322,000

#9 (135,000)

#10 741,000

Total $5,160,000

Prepare a customer profitability profile like the one in Exhibit 18.3. 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