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Janix Company reports the following information for two large customers for the year. Sales Cost of goods sold Gross profit Western College $ 104,000
Janix Company reports the following information for two large customers for the year. Sales Cost of goods sold Gross profit Western College $ 104,000 73,200 Eastern Technical $ 84,000 58,200 $ 30,800 $ 25,800 Using activity-based costing, the company computes a customer service activity rate of $120 per customer service call. For the year, the company reports 85 customer service calls for Western College and 15 customer service calls for Eastern Technical. Required: 1. Allocate customer service call costs to each customer and compute income for each customer. 2. After including customer service costs, which customer produces the highest income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate customer service call costs to each customer and compute income for each customer. Profitability Report Western College Eastern Technical Sales Gross profit Customer income Janix Company reports the following information for two large customers for the year. Sales Cost of goods sold Gross profit Western College $ 104,000 73,200 Eastern Technical $ 84,000 58,200 $ 30,800 $ 25,800 Using activity-based costing, the company computes a customer service activity rate of $120 per customer service call. For the year, the company reports 85 customer service calls for Western College and 15 customer service calls for Eastern Technical. Required: 1. Allocate customer service call costs to each customer and compute income for each customer. 2. After including customer service costs, which customer produces the highest income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 After including customer service costs, which customer produces the highest income? After including customer service costs, which customer produces the highest income?
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