Schneider Electric manufactures power distribution equipment for commercial customers, such

as hospitals and manufacturers. Activity$-$based costing was used to determine customer

profitability. Customer service activities were assigned to individual customers, using the

following assumed customer service activities, activity base, and activity rate:

Assume that the company had the following gross profit information for three representative

customers:

The administrative records indicated that the activity$-$base usage quantities for each customer

were as follows:

a$.$ Prepare a customer profitability report $($Exhibit $16$ in the textbook$)$ dated for the year

ended December $31,2023,$ showing:

i$.$ the income from operations after customer service activities.

ii$.$ the gross profit as a percent of sales.

iii. the income from operations after customer service activities as a percent of

sales. Prepare the report with a column for each customer. Round percentages

to the nearest whole percent.

b$.$ Interpret the report in part $($a$).$ How well or poorly is the company doing and why?