Management Accounting-Target costing, please provide detailed solutions, will give you thumbs up

Henry Office Supplies plc was established in 2010. The company has five customers; GG Plc, Kent Plc, TATA Plc, HORA Plc and KK Plc. Henry, the owner and manager of the company, is keen to know the profitability of each customer. To this end he asked John, management accountant, to provide customer profitability report. The accounting records show total sales of 5,700,000. The records further show that KK's operating profit contribution is the highest (Table 1) among the five customers. However, there is a total of 585,166 customer service cost incurred to provide various service to customers. As part of the process of preparing customer profitability report, John compiled the following information: Table 1. Revenues, operating profit contribution Customer GG KENT Annual revenue 1,300,000 130,000 10% TATA 800,000 70,000 1,200,000 100,000 8% Operating profit contribution operating profit contribution % HORA KK 1,000,000 1,400,000 120,000 200,000 12% 14% 9% Table 2. Activity cost driver and cost per cost driver Activity - cost driver Order processing normal delivery Urgent delivery Installation Credit collection costs Cost driver rate 450 per order 250 per mile 400 per mile 300 per installation 12% per annum Table 3. Activities carried out during the year 2019: TATA HORA KK GG 200 KENT 120 90 150 230 40 35 50 70 100 Customer Number of sales order Number of normal deliveries Number of urgent deliveries Number of installations Average debtor's day 5 2 30 10 12 30 vw N 4 3 4 5 60 45 30 90 Required: Based on the information provided above, prepare a customer profitability analysis and critically evaluate the profitability of Henry Office Supplies' customers. Based on your analysis, advise the management of the company on courses of action following your analysis