QUESTION 3 Sapa Enterprises manufactures coffee makers. The company has gathered the following data about two of its customers, Phuc Long and Trung Nguyen: Phuc Long | Trung Nguyen Sales revenue $215,000 $154,000 Cost of goods sold $95,000 $68,000 Sapa Enterprises also incurs some customer-level operating costs. The activities, cost drivers, and cost driver rates associated with these costs are provided below: Customer activity Cost driver Rate per unit of cost driver Sales activity Sales visits $900 Order taking Purchase orders $200 Special handling Units handled $30 Special shipping Shipments $500 Customer activity Sales visits Order taking Special handling Special shipping Phc Long 7 visits 17 orders 600 units 19 shipments Trung Nguyen 5 visits 22 orders 550 units 26 shipments REQUIRED: (a) Perform a customer profitability analysis for Sapa Enterprises. You are required to calculate the gross profit and operating profit of each of the two customers, and show gross profit, and EACH customer related costs as a percentage of sales. (b) Based on your calculations in requirement (a) above, which customer is more expensive to deal with? Briefly explain why you have chosen this customer. (c) Define what customer-sustaining activities are. (d) In regard to the customer-related activities for Sapa Enterprises: (0) Identify one example of a customer-sustaining activity. (ii) Briefly discuss the allocation criterion used in allocating the cost associated with the activity you identified in (d) 0)