Price Shrute Inc. manufactures office coplers, which are sold to retailers. The price and cost of goods sold for each copler are as follows: $690 per unit Cost of goods sold 410 Gross profit $280 per unit In addition, the company incurs selling and administrative expenses of $307,310. The company wishes to assign these costs to its three major retail customers, The Warehouse, Kosmo Co., and Supply Universe. These expenses are related to its three major nonmanufacturing activities: customer service, sales order processing, and advertising support. The advertising support is in the form of advertisements that are placed by Shrute Inc, to support the retailer's sale of Shrute coplers to consumers. The budgeted activity costs and activity bases associated with these activities are: Budgeted Activity Activity Activity Base Cost Customer service $48,960 Number of service requests Sales order processing 26,350 Number of sales orders Advertising support 232,000 Number of ads placed Total activity cost $307,310 Activity-base usage and unit volume information for the three customers is as follows: The Vanuse NUSTIT CO. Supply Universe TULUI Number of service requests 70 10 260 340 240 100 510 850 Number of sales orders Number of ads placed Unit volume 20 20 120 160 670 670 670 Required: 2,010 1. Determine the activity rates for each of the three nonmanufacturing activities. Round to the nearest whole dollar. Activity Rate Customer Service 144 per serv. reg Sales Order Processing 31 Advertising Support 1,450 per customer design change 2. Determine the activity costs allocated to the three customers, using the activity rates in (1). Activity Costs The Warehouse 46,520 per bid Kosmo Co. 33,540 Supply Universe 227,250 462,300 3. Construct customer profitability reports for the three customers, dated for the year ended December 31, 2016, using the activity costs in (2). The reports should disclose the gross profit and income from operations associated with each customer. Enter all amounts as positive numbers, except for a negative income from operations. Shrute Inc. Customer Profitability Report For the Year Ended December 31 The Warehouse Kosmo Co. Supply Universe Revenues 462,300 462,300 Cost of goods sold 274,700 274,700 274,700 Gross profit 187,600 187,600 Selling and administrative activities: Customer service Sales order processing Advertising support Total seling and administrative activities 187,600 Income (loss) from operations Check My Work 1 more Check My Work uses remaining,