FiberCom, Inc., manufactures fiber optic cables for the computer and telecommunications industries. At the request of the company's 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.

Customer-Related Activities	Cost Driver Base	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 FiberCom's customers for the most recent year are:

Customer-Related Activities	Caltex Computer	Trace Telecom
Sales activity	8	6
Order taking	15	20
Special handling	800	600
special shipping	18	20

The following additional information has been compiled for FiberCom for two of its customers, Caltex Computer and Trace Telecom, for the most recent year:

Caltex Computer ($)	Trace Telecom ($)
Sales Revenue	380,000	247,600
Cost of Goods Sold	160,000	124,000
General Selling Costs	48,000	36,000
General Admin Costs	38,000	32,000

Required: 1. Prepare a customer profitability analysis for Caltex Computer and Trace Telecom 2. If you are the management of FiberCom, Inc., based on the result from Requirement 1, what is your response? 3. If Trace Telecom's sales revenue was $250,000 and Caltex Computer's cost of goods sold was $155,000; how does the previous analysis change?