ProfitMax Performance Evaluation Cloud Software, LLC sells five (5) highly sophisticated and integrated information system analytics products, identified as Product: Financial Performance, Optimization Analytics, Descriptive Analytics, Predictive Analytics, and Prescriptive Analytics.

You are being asked to determine the profitability of one customer and also determine the customer profit margin, by product sold. Philadelphia Strategic Analytics Implementers is the customer in question and management is concerned that the operations result are not truly indicative of operation costs and are looking to evaluate the profitability of the customer.

You are given two informational tables, one with detail information for each of the products and another table for the purpose of calculating the ABC activity rates (POR).

ProfitMax Performance Evaluation Cloud Software, LLC has recently implemented an ABC system. The system implemented activity cost pools for the following:

Activity Cost Pool	Activity Rate
Consulting support	? to be calculated	per Direct Labor Hour
Fee structure support	? to be calculated	per order processed
Implementation design	? to be calculated	per custom design
Design analysis	? to be calculated	per Direct Labor Hour
Customer service	? to be calculated	per Customer

The detail information in the first table indicate the selling price per unit, the direct material and direct labor costs, and the ABC activity costs per product. Complete the first table indicating the revenues and cost for each product and in total. Calculate the product profit margin for each product and the total customer margin for the customer. Also calculate the total customer profit margin percent for the customer.

Customer Service (Activity Pool) is a customer level activityall other activity pools are product level costs. I.e. you should only charge Customer Service once to the customer and not to any particular product.

A D E F G 1 2 Profitmax Performance Evaluation Cloud Software, LLC Customer: Philadelphia Strategic Analytics Implementers Product: Product: Product: Product: Financial Optimization Descriptive Predictive Performance Analytics Analytics Analytics Product: Prescriptive Analytics 3 Total 4 Sales 5 Costs: 6 Direct Materials 7 Direct Labor 8 Fee structure support 9 Implementation design 10 Consulting support 11 Design analysis 12 Customer service 13 Total Costs 14 15 Product profit margin 16 Customer profit margin 17 Customer Profit Margin % #DIV/0! A B D E F 19 20 Product Related Information 21 Number of products 130 87 185 133 75 22 Number of orders 36 18 160 38 16 23 Number of custom designs 24 16 12 22 24 D/L Hours per product 78.50 92.00 108.00 94.00 42.50 25 Selling price per product $ 8,995 $ 14,995 $ 16,995 $ 12,995 $ 10,995 26 D/M cost per product $ 450 $ 980 $ 650 $ 490$ 720 27 D/L per hour 22.50 $ 31.40 $ 72.00 36.50 27.00 28 29 30 ABC Costing - Activity Cost Pool POR Rate Analysis 31 Activity Rate Calculation 32 Activity Cost Pool Est. Cost Pool Est. Cost Driver POR Rate Basis 33 Consulting support $ 10,576,332 406,782 per D/L Hour 34 Fee structure support $ 1,125,600 3,216 per order 35 Implementation design $ 701,520 888 per custom design 36 Design analysis $ 11,186,505 406,782 per D/L Hour 37 Customer service $ 251,650 70 per customer