Question 3: Evaluating customer profitability You own a credit card company. You want to evaluate the profitability of customers A and B. customer A customer B credit card balance $1,000 $400 number of transactions 100 40 number of customer-support calls 40 2 The only source of revenue from customers is the interest that you charge on credit card balances. You charge customers an interest rate of 20%. Thus, if the credit card balance is $1,000, revenue is $1000 0.2-$200. Variable costs are zero for simplicity. From your ABC system, the activity rates are $0.5 per transaction and $4 per customer-support call. a) Compute revenue, costs, and profit margin for each customer. customer A customer B Revenue Variable costs $100 $0 X$40 x 50 Contribution margin $100 X $40 x Allocated costs transactions $ 25 X10 x Allocated costs customer supports 80 X $4 x X $26 x Profit margin Enter negative numbers with a minus sign, le, a loss of $200 should be entered as -200, not as (200) or ($200).