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	$336,000
	#2	634,000
	#3	(277,000)
	#4	979,000
	#5	1,060,000
	#6	902,000
	#7	628,000
	#8	292,000
	#9	(95,000)
	#10	711,000
Total		$5,170,000

(a) 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 (ii) Calculate the total profits for the 5 most profitable customers (iii) Calculate the total profits for the 8 most profitable customers (iv) Calculate the total profits for the 9 most profitable customers (b) Dropping customers 3 and 9 would not necessarily result in an increase in profits of $372,000. (c) Customer profitability analysis helps management to determine whether some customers are unprofitable, and whether the customers that produce the most sales revenue are producing the most profits.