FiberCom Inc manufactures fiber optic cables for the computer and
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:


Required:
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.
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