Question 1.1 Custom Course Packets has hired you to calculate the profitability of its three customer types. Here are the revenues and directly traceable costs for each customer type: Individual Corporate University Total Customers Customers Customers Revenues $600,000 $750,000 $700,000 $2,050,000 Direct Costs $450,000 $562,500 $525,000 $1,537,500 In addition, there are $130,000 in costs that cannot be directly traced to the customer types. You have decided to use activity-based costing to allocate the costs to each customer type. Here are the estimated cost pools (along with the respective activity measures) for the company as a whole: Activity Cost Pool Activity Base Quantity Ordering costs $80,000 No. of customer orders 40,000 Product design costs $20,000 No. of product designs 400 Customer service costs $30,000 No. of customer complaints 500 Below are the actual activity levels for each customer type: Individual Customers Corporate Customers University Customers No. of customer orders 30,000 15,000 13,000 No. of product designs 220 110 130 No. of customer complaints 250 150 190