Customer profitability analysis: manufacturer LO 15.9 2 Feather Light manufactures optic cables for the telecommunications industry. The cost management staff have just completed a customer profitability analysis, at the request of the marketing manager. The following information forms the basis for the analysis: Customer-driven activities Cost driver Cost driver rate Sales activity Sales visits $2 000 Order taking Purchase orders 400 Special handling Units handled 100 Special shipping Shipments 1 000 Cost driver data for two of Feather Light's major customers for the most recent year are as follows: Customer-driven activities CaesarStream NeroCom Sales activity 8 sales visits 6 sales visits Order taking 15 purchase orders 20 purchase orders Special handling 800 units handled 600 units handled Special shipping 18 shipments 20 shipments The following data relates to those two customers: CaesarStream NeroCom Sales revenue $380 000 $247 600 Cost of goods sold 60 000 124 000 General selling costs 18 000 36 000 General administrative costs 38 000 32 000 Required Page 713 1. Prepare a customer profitability analysis for CaesarStream and NeroCom. 2. Prepare a customer profitability graph, similar to the one in Exhibit 15.14 9, for the two customers. 3. Comment on the relative profitability of the two customers. 4. Construct an Excel spreadsheet to solve requirement 1. Show how the solution will change if CaesarStream's sales revenue is $250 000 and NeroCom's cost of goods sold is $155 000