PLEASE SEE BELOW AS THERE WERE CHARSTS I COULDNT JUST ATTACH UNLESS IT WAS PDF

39 Customer Decision. The following customer segmented quarterly income statement is for Cortez Law Services LLC. Management is concerned about the significant losses associated with the Nguyen account and would like to drop this customer. Allocated fixed costs are assigned to customers based on sales revenue. If Nguyen is dropped, total allocated fixed costs are assigned to the remaining customers, and all variable and direct fixed costs for the Nguyen account will be eliminated. Required: 1 Perform differential analysis using the format presented in Figure 7.10 \"Customer Differential Analysis for Colony Landscape Maintenance\". Assume keeping all customers is Alternative 1, and dropping the Nguyen account is Alternative 2. 2 Which alternative is best? Explain. 3 Summarize the result of dropping the Nguyen account using the format presented in Figure 7.12 \"Summary of Differential Analysis for Colony Landscape Maintenance\". 4 Explain what happened to the profitability of the other two customers as a result of dropping the Nguyen account