Question

Refer to the information given in the preceding problem for FiberCom, Inc., and two of its customers, Caltex Computer and Trace Telecom. Additional information for six of FiberCom’s other customers for the most recent year follows:
Customer Operating Income
Network-All, Inc.................................................... $186,000
The California Group............................................. 12,000
Golden Gate Service Associates........................... 142,000
Tele-Install, Inc.................................................... (36,000)
Graydon Computer Company............................. 120,000
Mid-State Computing Company.......................... 84,000

Required:
1. Prepare FiberCom’s customer-profitability profile for the most recent year.
2. As FiberCom’s director of cost management, write a memo to the company’s vice president of marketing which will accompany the customer-profitability profile. Include a brief explanation of the methodology used and comment on the results.



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  • CreatedApril 22, 2014
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