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

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Profitmax Performance Evaluation Cloud Software, LLC Customer: Philadelphia Strategic Analytics Implementers Product: Product: Product: Product: Product: Optimization Descriptive Analytics Financial Predictive Prescriptive Performance Analytics Analytics Analytics Total 175.920 Sales 323,820 1.319,560 2.719.200 493.810 5,032,310 Costs Direct Materials 57,600 86,240 119,600 63,360 53,280 380,080 255,596 Direct Labor 226,080 1,430,784 452,892 84,915 2.450,267 Fee structure support Implementation design Consulting support Design analysis Customer service Total Costs 2,830,347 Product profit margin Customer profit margin 2,201,963 Customer Profit Margin 43.8% Product Related Information Number of products 128 88 184 132 74 Number of orders 36 18 160 38 16 Number of custom designs 22 24 16 12 DIL Hours per product 78.50 92.50 108.00 94.00 42.50 Selling price per product 14,995 $ 16,995 $ 8,995 12,995 10,995 450 $ 480 $ DIM cost per product $ 086 $ 650 $ 720 31.40 DIL per hour 22.50 72.00 36.50 27.00 ABC Costing -Activity Cost Pool POR Rate Analysis Activity Rate Calculation Activity Cost Pool Est. Cost Pool Est. Cost Driver Basis POR Rate Consulting support 10,527.192 404,892 per DIL Hour Fee structure support 1,125,600 3,216 per order Implementation design 701,520 per custom design 888 Design analysis 11,134,530 404,892 per DIL Hour Customer service 251,650 70 per customer Profitmax Performance Evaluation Cloud Software, LLC Customer: Philadelphia Strategic Analytics Implementers Product: Product: Product: Product: Product: Optimization Descriptive Analytics Financial Predictive Prescriptive Performance Analytics Analytics Analytics Total 175.920 Sales 323,820 1.319,560 2.719.200 493.810 5,032,310 Costs Direct Materials 57,600 86,240 119,600 63,360 53,280 380,080 255,596 Direct Labor 226,080 1,430,784 452,892 84,915 2.450,267 Fee structure support Implementation design Consulting support Design analysis Customer service Total Costs 2,830,347 Product profit margin Customer profit margin 2,201,963 Customer Profit Margin 43.8% Product Related Information Number of products 128 88 184 132 74 Number of orders 36 18 160 38 16 Number of custom designs 22 24 16 12 DIL Hours per product 78.50 92.50 108.00 94.00 42.50 Selling price per product 14,995 $ 16,995 $ 8,995 12,995 10,995 450 $ 480 $ DIM cost per product $ 086 $ 650 $ 720 31.40 DIL per hour 22.50 72.00 36.50 27.00 ABC Costing -Activity Cost Pool POR Rate Analysis Activity Rate Calculation Activity Cost Pool Est. Cost Pool Est. Cost Driver Basis POR Rate Consulting support 10,527.192 404,892 per DIL Hour Fee structure support 1,125,600 3,216 per order Implementation design 701,520 per custom design 888 Design analysis 11,134,530 404,892 per DIL Hour Customer service 251,650 70 per customer