Question #3 -CPA & Target Costing (25%) PT Usaha Maju manufactures processors for computer and telecommunications industries. At the request of the company's Vice President of Marketing, the cost management staff has recently completed a customer-profitability study. The following activity-based costing information was the basis for the analysis. Customer-Related Cost Driver Base Activities Cost Driver Rate ($) Delivery activity Shipments 12,500 Order processing Sales orders 10,000 Sales activity Sales visits 25,000 PT Usaha Maju only have two retail and two wholesale customers: Cost-driver data and other related information for the four customers for the most recent year are: Customer-Related Wholesale Retail Activities PTA PT B PTC PT D Order processing Sales orders 20 25 12 8 Sales activity Sales visits 12 5 5 3 Quantity Sold Units 200 300 100 90 The processor was sold at the price of $20,000 per unit and had a full product cost of $12,500 per unit. Delivery to the customer is made per order received. The following additional information has been compiled for PT Usaha Maju and its four customers, for the most recent year (in $): PTA PT B PTC PT D General Selling Costs 400,000 600.000 200,000 180,000 General Admin Costs 320,000 480.000 160,000 144,000 Required: 1. Prepare a customer profitability analysis for the four customers of PT Usaha Maju (16%) 2. If you are the management of PT Usaha Maju, based on the result from Requirement 1, what is your response for each of the customer? (6%) 3. If PT Usaha Maju has targeted a 4% Customer Level Operating Income per customer; how does the previous analysis change? (3%)