Car-on-Truck, Inc., delivers automobiles for individuals who relocate. For example, a college professor at the University of Notre Dame wants her Corvette transported to Berkeley, California, where she has taken a new job at the University of California, Berkeley. This professor contracts with Car-on-Truck, Inc., to haul her car from Notre Dame to Berkeley. Car-on-Truck, Inc., provides these services for three types of customers: Domestic Regional customers, who ship their cars within the United States over a distance of 500 miles or less; Domestic National customers, who ship their cars within the United States over a distance of more than 500 miles; and Foreign customers who ship their cars to Mexico or Canada. The company€™s financial analysts have developed the following cost information:

a. Compute the amount of the above costs, items 1 through 4, that would be assigned to
Customers X, Y, and Z.
b. Compute the profitability of Customers X, Y, and Z given the above sales and the costs assigned in requirementa.

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Expected Expected Level of Cost Driver for the Year Annual Cost $800,000 $100,000 $700,000 $100,000 Cost Driver Cost 1. Transportation Costs 2. Processing a Customer's Order 3. Marketing Management 4. Special Requirements to Ship to Miles driven Number of minutes spent with customer Sales dollars Number of cars shipped to foreign locations 1,000,000 miles 100,000 minutes $7,000,000 200 Foreign Locations CustomerX- Domestic Regional 400 30 $600 No Customer Y-Domestic National Customer Z-Foreign Number of Miles Driven Number of Minutes Spent with Customer Sales Dollars Ship to Foreign Location 2,200 1,300 80 $1,500 Yes 35 $2,000 No