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Customer Project Engineering
serv. reqs. bids desgn. chngs.
Activity rate /serv. req. /bid /change
2.
of Activities Rate = Total
Gough Industries
Customer service serv. reqs. /req.
Project bidding bids /bid
Engineering support desgn. chngs. /chng.
Total nonmanufacturing activity costs
Breen Inc.
Customer service serv. reqs. /req.
Project bidding bids /bid
Engineering support desgn. chngs. /chng.
Total nonmanufacturing activity costs
3.
Industries Breen Inc. Group
Revenues
Cost of goods sold
Gross profit
Selling and administrative activities:
Customer service
Project bidding
4.
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Customer Profitability Report
For the Year Ended December 31
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Customer Project Engineering
of Activities Rate = Total
Total nonmanufacturing activity costs 39,800$
Total nonmanufacturing activity costs 47,150$
Total nonmanufacturing activity costs 139,300$
3.
Industries Breen Inc. Group
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The Martin Group is unprofitable, while the other two customers have acceptable margins. This is because The Martin Group requires many
Customer Profitability Report
For the Year Ended December 31