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Sthneider Electric manutactures power diatribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was usod to determine customer profieaberity. Customer service activites
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Sthneider Electric manutactures power diatribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was usod to determine customer profieaberity. Customer service activites wore assigned to individual customers, using the following assimed customer service activities, activity baso, and activity rate: Assume that tho company had the folowing gross profit information for thee ropesentative customees: The administrative rocords indicated that the activity-base usage quantities for each customer were as follows: Required: 3. Prepare a customer profitabilty report dafed for the year ended December 31.20 y , showing (1) the income from operations after customer service activities, (2) the gross profit as a percent of sales, and (3) the income from operations after oustomer service activities as a percent of sales. Prepare the report winh a column for each customer. Refor to the Labels and Amount Doscriptions for exact wording of text entries. Be sure to compiefe the statement heacing Enfer all amounts as positive numbers, except for a negative income from operations. Round percenteges to the one decimal place. Colons will appear automatically b. Interpret the report in part (a). Ins Labels and Amount Descriptions Labels Customer service activities December 31, 20 Y 8 For the Year Ended December 31, 20 Y 8 Amount Descriptions Bid preparation Cost of goods sold Gross profit As Income from operations after customer service activiti? Post-sale customer service Revenues, Sales order processing Shipment Support standard items Support nonstandard items Total customer service activities a. Prepare a customer profitabily report dated for the year ended December 31 , 20 y , showing (1) the income from operations after customer service activities, (2) the gross profit as a percent of sales, and (3) the income from operations after customer service activities as a percent of sales. Prepare the report with a column for each customer. Refer to the Labels and Amount Descriptions for exact wording of text entries. Be sure to complete the statement heading. Enter all amounts as positive numbers, except for a negative income from operations. Round percentages to the one decimal place. Colons will appear automatically. Customer Profitability Report Shaded cells have foed (tabet) Gross profit as a percentage of sates 13 Income from operations after customer service activities as a percent of sales Points
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