FiberCom, 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.

Cost-driver data for two of FiberCom’s customers for the most recent year are:

The following additional information has been compiled for FiberCom for two of its customers, Caltex Computer and Trace Telecom, for the most recent year:

1. Prepare a customer-profitability analysis for Caltex Computer and Trace Telecom.
2. Build a spreadsheet: Construct an Excel spreadsheet to solve requirement (1) above. Show how the solution will change if the following information changes: Trace Telecom’s sales revenue was $250,000 and Caltex Computer’s cost of goods sold was$155,000.

  • CreatedApril 22, 2014
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