Calculate the total profits

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Reference no: EM131073938

Gonalong, Inc. has 10 customers that account for all of its $4,520,000 of net income. Its activity-based costing system is able to assign all costs, except for $650,000 of general administrative costs, to key activities incurred in connection with serving its customers. A customer profitability analysis based on activity costing produced the following customer profits and losses:

Customer

#1

$336,000

#2

634,000


#3

(277,000)


#4

979,000


#5

1,060,000


#6

902,000


#7

628,000


#8

292,000


#9

(95,000)


#10

711,000


Total

$5,170,000


(a) Using the customer profitability analysis provided in the exercise to calculate the following profits.

(i) Calculate the total profits from the 3 most profitable customers

(ii) Calculate the total profits for the 5 most profitable customers

(iii) Calculate the total profits for the 8 most profitable customers

(iv) Calculate the total profits for the 9 most profitable customer

Reference no: EM131073938

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