Yang Corp. sells its products at $$50$ per unit and the firm's gross margin ratio is $40\%$ of $(4$ points$)$ Yang Corp. sells its products at $$50$ per unit and the firm's gross margin ratio is $40\%$ of

revenues. Yang currently allocates indirect costs to customers at a rate of $24\%$ of Customer

Revenue.

Yang's operating information is as follows:

a$.$ Using an Income Statement format, calculate Operating Income for customers Huang and Luang

using the current allocation method.

b$.$ As a manager evaluating the accuracy of this Customer Profitability report, what is your biggest

concern about the allocation method used in your analysis above?

revenues. Yang currently allocates indirect costs to customers at a rate of $24\%$ of Customer

Revenue.