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E19-26. Customer Profitability Analysis Leahy Inc. has 10 customers that account for all of its $4,200,000 of net income. Its activity-based costing system is able
E19-26. Customer Profitability Analysis Leahy Inc. has 10 customers that account for all of its $4,200,000 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: $ 306,000 Customer #1..... ........................... 624,000 (257,000) #4. 909,000 950,000 872,000 #7... 598,000 #8............ 322,000 .. . # 9............... (105,000) #10.............. ........... 631,000 Total ......................................................................... $4,850,000 II............. Required Prepare a customer profitability profile like the one in Exhibit 19.3
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