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Customer Profitability Analysis Gonalong, Inc. has 10 customers that account for all of it of net income. Its activity-based costing system is able to assign
Customer Profitability Analysis Gonalong, Inc. has 10 customers that account for all of it of net income. Its activity-based costing system is able to assign administrative costs, to key activities incurred in connection with serving its customers. profitability analysis based on activity costing produced the following customer profits and losses: all costs, except for $650,000 of general A customer Customer #1 #2 #3 . $346,000 624,000 969,000 1,040,000 872,000 628,000 322,000 (105,000) 711,000 $5,150,000 #6.. #9 #10 equired Prepare a customer profitability profile graph. Sort the customers in order of profitability from most profitable to least profitable, then plot the cumulative profit with total profits along the y-axis and cus- tomers along the x-axis. What is the maximum amount of profit that Gonalong could achieve if they were to eliminate their unprofitable customers
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