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P 15.41 Customer profitability analysis: manufacturer Feather Light manufactures optic cables for the telecommunications industry. The cost management staff have just completed a customer
P 15.41 Customer profitability analysis: manufacturer 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: Copyright @ 2017 McGraw-Hill Education (Australia) Pty Ltd IRM t/a Langfield-Smith, Thorne, Smith, Hilton Management Accounting 8e Customer-driven activities Sales activity Order taking Special handling Special shipping Cost driver Sales visits Purchase orders Units handled Shipments Cost driver rate S2 ooo 100 I OOO Cost driver data for two of Feather Light's major customers for the most recent year are as follows: Customer-driven activities Sales activity Order taking Special handling Special shipping CaesarStream S sales visits 15 purchase order: SOO units handled IS shipments OCom 6 sales visits 20 purchase order: 600 units handled 20 shipments
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