Lion Manufacturing makes a component called A1030. (Click the icon to view more information.) This component is manufactured only when ordered by a customer, so Lion keeps no inventory of A1030. The list price is $125 per unit, but customers who place "large" orders receive a 10% discount on price. The customers are manufacturing firms. Currently, the salespeople decide whether an order is large enough to qualify for the discount. When the product is finished, it is packed in cases of 10. If the component needs to be exchanged or repaired, customers can come back within 10 days for free exchange or repair. The full cost of manufacturing a unit of A1030 is $100. In addition, Lion incurs customer-level costs. Customer-level cost-driver rates are: Click to view the cost driver rates.) Order taking Product handling $340 per order $5 per case Rush order processing $580 per rush order Exchange and repair costs $25 per unit Information about Lion's five biggest customers follows: (Click to view the information) All customers except ordered units in the same order size Customer's order quantity varied, so got a discount part of the time but not all the time. B D Number of units purchased 5,650 1,650 1,450 4,450 8,300 Discounts given 10% 10% 0 10% 10% on half the units Number of orders 4 22 57 24 22 Number of cases 400 240 170 420 8 860 Number of rush orders 8 19 8 0 9 Number of units exchanged repaired 10 87 18 44 175 1. 2. Calculate the customer-level operating income for these five customers. Prepare a customer-profitability analysis by ranking the customers from most to least profitable. Discuss the results of your customer-profitability analysis. Does Lion have unprofitable customers? Is there anything Lion should do differently with its five customers? Requirement 1. Calculate the customer-level operating income for these five customers. Prepare a customer-profitability analysis by ranking the customers from most to least profitable. Begin by calculating each customer's gross margin. Then calculate the operating income for each customer. (Enter a "0" for amounts with zero balances. Use a minus sign or parentheses for an operating loss.) A B Customer C D E Revenues at list price Price discounts Revenues at actual price Cost of goods sold Gross margin