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Gonalong, Inc. has 10 customers that account for all of its $4,520,000 of net income. Its activity-based costing system is able to assign all costs,

Gonalong, Inc. has 10 customers that account for all of its $4,520,000 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:

Customer #1 $336,000
#2 634,000
#3 (277,000)
#4 979,000
#5 1,060,000
#6 902,000
#7 628,000
#8 292,000
#9 (95,000)
#10 711,000
Total $5,170,000

(a) Using the customer profitability analysis provided in the exercise to calculate the following profits. (i) Calculate the total profits from the 3 most profitable customers Answer (ii) Calculate the total profits for the 5 most profitable customers Answer (iii) Calculate the total profits for the 8 most profitable customers Answer (iv) Calculate the total profits for the 9 most profitable customers Answer

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