Janix Company reports the following information for two large customers for the year.

Using activity-based costing, the company computes a customer service activity rate of \(\$ 125\) per customer service call. For the year, the company reports 80 customer service calls for Western College and 20 customer service calls for Eastern Technical.

Required

1. Allocate customer service call costs to each customer and compute income for each customer.

2. After including customer service costs, which customer produces the highest income?

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Sales... Cost of goods sold Gross profit. Western College $100,000 70,000 $ 30,000 Eastern Technical $80,000 55,000 $25,000