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Customer- Profitability FiberCom, Inc., manufactures fiber optic cables for the computer and telecommunications industries. At the request of the company vice president of marketing,

 

Customer- Profitability FiberCom, Inc., manufactures fiber optic cables for the computer and telecommunications industries. At the request of the company vice president of marketing, the cost management staff has recently completed a customer- profitability study. The following activity-based costing information was the basis for the analysis. Analysis; Activity-Based Customer-Related Activities Sales activity Cost Driver Base Sales visits Cost Driver Rate $2,000 Costing Order taking Purchase orders 400 Special handling Problem 5-66 Special shipping Units handled Shipments 100 1,000 Build a Spreadsheet excel worksheet (LO 5-9) 1. Caltex Cost-driver data for two of FiberCom's customers for the most recent year are: Customer-Related Activities Sales activity Order taking Special handling Special shipping. Caltex Computer 8 visits........ 15 orders.. Trace Telecom 6 visits 20 orders 800 units handled. 600 units handled 18 shipments. 20 shipments computer, operating income: The following additional information has been compiled for FiberCom for two of its customers, Caltex Computer and Trace Telecom, for the most recent year: $14,000 Sales revenue Cost of goods sold... General selling costs. General administrative costs Required: Caltex Computer $390,000 160,000 48,000 38,000 Trace Telecom $247,600 124,000 36,000 32,000 1. Prepare a customer-profitability analysis for Caltex Computer and Trace Telecom. (Hint: Refer to Exhibit 5-13 for guidance.)

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