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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
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 19.3. 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 (ii) Calculate the total profits for the 5 most profitable customers (iii) Calculate the total profits for the 8 most profitable customers q (iv) Calculate the total profits for the 9 most profitable customers
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