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Need help with P5-4A and P5-5A Thank you f the two methods for determining product costs d Discuss some of the strategic implications of your
Need help with P5-4A and P5-5A
Thank you
f the two methods for determining product costs d Discuss some of the strategic implications of your answers to the previous PS-4A. Customer Profitablity Amalysis Gonalong Ine, has 10 customers that account forall of is s 500000 Los Enet income Its activity based costing system is able to assign all costs exoept for $650,000 of general administrative costs, to key activities incurred in connection with serving its customers. A customer profitability analysis based on activity costing produced the following customer profits and losses Customer #1 #2 #3. #4 #5 #6 #7 #8 346,000 624,000 (257,000) 969,000 3:4872,000 628,000 322,000 (105,000) 711.000 #10 Total R$5.150,000 equired Prepare a customer profitability profile graph. Sort the customers in order of profitability from most profitable to least profitable, then plot the cumulative profit with total profits along the yoixis and cus tomers along the x-axis What is the maximum amount of profit that Gonalong could achieve if they were to eliminate their unprofitable customers PE-SAL Customer Profitability Analysis Refer to the previous exereise ps P5 4A for Gonalong, Inc. LO5 Reguired I Gonalong were to notify customers 3 and 9 that it will no longer be able to provide them ser vices in the fFuture. will that increase company profits by $362000? Why or why not? b.i/ What is the primaty be fit of preparing a custoimer profitablity analysisStep by Step Solution
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