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Customer Profitability Analysis Gonalong, Inc., has 10 customers that account for all of its $4, 500,000 of net income. Its activity-based costing system is able
Customer Profitability Analysis Gonalong, Inc., has 10 customers that account for all of its $4, 500,000 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: Required 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 customers 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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