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, actity base, and activity rate: Customer Service Activity Activity Base Activity Rate Bid preparation Number of bid requests $400 per request Shipment Number of shipments $80 per shipment Support standard toms Number of standard tons ordered $25 per std. item Support nonstandard tems Number of nonstandard tems ordered $150 per nonstd. nom Assume that the company had the following gross profit information for three representative customers Customer 1 Customer 2 Customer 3 1 $120,000.00 $200,000.00 $160,000.00 2 Revenue 76,800.00 110,000.00 3 Cost of goods sold 83,200.00 543,200.00 $90,000.00 $76,800.00 Gross profit 36.0% 45.0% 48.0% 5 Gross profit as a percent of sales The administrative records indicated that the activity-base usage quantities for each customer were as follows: Customer 1 Activity Base Customer 2 Customer 3 14 38 55 Number of bid requests 60 48 Number of shipments 30 50 Number of standard items ordered ona 8 70 80 Number of nonstandard items ordered Labels Customer service activities December 31, 2048 For the Year Ended December 31, 20Y8 Amount Descriptions Bid preparation Cost of goods sold Gross profit Income from operations after customer service activities Post-sale customer service Revenues Sales order processing Shipment Support standard items Support nonstandard items Total customer service activities Question not attempted. Schneider Electric Score: 0/179 Customer Profitability Report (Label) 1 Customer 1 Customer 2 Customer 3 2 3 4 (Label) 6 7 8 9 10 11 12 Gross profit as a percentage of sales 13 Income from operations after customer service activities as a percent of sales