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Part II (20 points) NOTE: PLEASE USE DIFFERENT FONT TO DISTINGUISH YOUR RESPONSES FROM THE QUESTION ITEMS. REFERENCE YOUR PCP ANALYSIS AS NECESSARY. 5. Profitability
Part II (20 points) NOTE: PLEASE USE DIFFERENT FONT TO DISTINGUISH YOUR RESPONSES FROM THE QUESTION ITEMS. REFERENCE YOUR PCP ANALYSIS AS NECESSARY. 5. Profitability Analysis (6 points) Analyze product and customer profitability under traditional costing and ABC. a. Does PWC appear to be losing money on either or both products? Explain. Does PWC appear to be losing money on either or both customers? Explain. b. If the profitability is different across the traditional and ABC costing systems, which system do you believe? Why? c. What recommendation(s) can you provide to PWC management to better manage and improve customer profitability
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