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Kogan Ltd is a telecommunication manufacturer and supplier. Kogan markets its products to customers and includes support services (through one of two enquiry channels) to its customers at no additional cost. The two enquiry channels are by telephone call or online. Therefore, the cost of providing support service has been divided into two cost pools. The cost driver for phone enquiries is the number of calls and the cost driver for online enquiries is the number of emails received. The following budget provides details relating to three of Kogan's major customers. Calculate profitability against sales (including support service resources used by each customer) using the figures provided. Customer A Ltd B Ltd CLtd Total Sales $100,000 $120,000 $80,000 $300,000 Cost of goods sold $45,000 $40,000 $28,000 $113,000 Support Activities: Phone enquiries 150 900 300 1,350 On-line enquiries 1,400 600 300 2,300 Cost pools for support service activities: Phone support enquiries $90,000 On-line support enquiries $25,000 Your task: Based on your calculations regarding overall customer profitability (as need to be calculated from the above figures). Advise Kogan by selecting correctly from the available options: Which of the following is correct regarding Kogan and its customers? A. Phone enquiries supplied by Kogan cost over $65 each; On-line enquiries supplied by Kogan cost over $10 each. B. Phone enquiries supplied by Kogan cost less than $10 each; On-line enquiries supplied by Kogan cost less than $65 each. C. A Ltd is the best customer with whom Kogan deals based on margin as a percentage of sales. D. B|Ltd is the best customer with whom Kogan deals based on margin as a percentage of sales