gonalong, inc. has to customers that account for all of

Project Description:

gonalong, inc. has to customers that account for all of its $4,500,000 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 …………………………………… $346,000#2 …………………………………… 624,000#3 …………………………………… (257,000)#4 …………………………………… 969,000#5 …………………………………… 1,040,000#6 …………………………………… 872,000#7 …………………………………… 628,000#8 …………………………………… 322,000#9 …………………………………… (105,000)#10 …………………………………… 711,000total …………………………………………. $5,150,000required:a. prepare a customer profitability profile like the one in exhibit 6.3.b. if gonalong were to notify customers 3 and 9 that it will no longer be able to provide them services in the future, will that increase company profits by $362,000? why or why not?c. what is the primary benefit of preparing a customer profitability analysis?
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