Prepare a customer profitability analysis for trace telecom

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Reference no: EM132737709

Problem - Customer-Profitability Analysis

Fresno Fiber Optics. Inc. manufactures fiber optic cables for the computer and telecommunications industries. At the request of the company vice president of marketing, the cost management staff has recently completed a customer-profitability study. The following activity-based costing information was the basis for the analysis.

Customer.Related Activities Cost Driver Base............................................. Cost Driver Rate

Sales dandy ............................................. Sales VISAS ....................................................................................... 51.000

Order taking ........................................... Purchase orders ................................................................................. 200

Special handling ........................................................... Units handed ............................................................ 50

Special shipping ........................................................... Shipments ............................................................................................... 500

Cost-driver data for two of Fresno's customers for the most recent year arc

Customerilielated Activities Trace Telecom Cages Computer

Sales actrinty .......................................................................... 8 visits ............................................................................................ 6 visits

Order taking .................................................................... 15 orders ....................................................................................... 20 orders

Special handling. ..................................... 800 units handed ........................................................................ 600 units handled

Special shipping 18 shipments ................................................................................... 20 shipments

The following additional information has been compiled for Fresno Fiber Optics for two of its cus¬tomers. Trace Telecom and Caltex Computer. for the most recent 5tar:

	Trage Telecom	Cenci Computer
Safes revenue.............................	S190.000. ................................	S123.800
Cost or goods sold........................	80.000. ................................	62.000
General seeing costs.....................	24.000. ................................	18.000
General administrative costs............	19.000.....................................................	16.000

Required:

1. Prepare a customer profitability analysis for Trace Telecom and Caltex Computer. (Hint Refer to Exhibit 5-13 for guidance.)

2. Build a spreadsheet: Construct an Excel spreadsheet to solve requirement ( I ) above. Show how the solution will change if the following information changes: Trace Telecom's sales revenue was S185.000 and Cakes Computer's cost of goods sold was 559.000.

Reference no: EM132737709

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Reviews

inf2737709

3/16/2021 3:00:07 AM

These are just two question to prepare excel sheet. I don’t believe that professional experts are available in the market; my friend recommends the Expertsmind for all college/school assignment. For this task, I register myself to the Expertsmind and asked them for help; they instant revert me and accept my assignment. Your teams gave the solution more within the deadline and were get time to revise my solution. The expert did the best work. Thank you so much for your help.

len2737709

12/21/2020 1:59:33 AM

Problem 5-65 should be prepared using Excel. Please note, you must show your work in Excel, which includes providing the formulas in the cells, not just the summary value. You may not earn full points if you do not show your work in detail.

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