Mosk, CEO of X-Space Industries, decided to expand the company's product offering Ellie beyond the core model rocket business. After investigation, she decided to set up a separate division to design and manufacture products for the drone market Several companies were interested in having X-Space develop these drones, and financial results, to date, have been encouraging. Revenue was $4 million, gross margins have been running about 40%, and the customer sales and support costs were $1 million. However, there is a growing concern that some customers require a disproportionate share of the sales and support resources, and the true profitability of the customers is unknown. Data were collected to support an analysis of customer profitability: Activity Sales visits Product modifications Phone calls E-mail/electronic communications Cost Driver Sales visit days Number of modifications Number of minutes Number of communications Total Cost 496,000 280,000 94,000 182,000 $1,052,000 Visit Phone Electronic Customer Revenue S 410,000 510,000 610,000 1,200,ee0 Gross ProfitDays Modifications Minutes Communication S 160,000 210,000 240,000 430,000 600,000 $1,640,000 15 25 40 90 100 270 15 15 40 60 70 200 1,230 1, 320 1,570 1,920 2.320 8,360 625 875 1,200 2,200 2,450 7,350 Totals $4,330,000