2. Prepare a customer profitability report for each laptop model for (a) an order for 500 S models from a local college and (b) an order for 500 Flex models from a local hospital. The company budgets 500 support calls for both orders.

Assume Samsung uses activity-based costing to allocate customer support costs to products. For two of its laptop models, assume the company reports the data below. The Galaxy Book S sells for $1,000 per unit and the Galaxy Book Flex sells for $900 per unit. Galaxy Book Flex Product Cost per Unit Direct materials Direct labor Overhead Total product cost Galaxy Books $ 520 60 120 $ 700 $ 390 50 140 $ 580 Customer Support Annual costs Annual number of calls Galaxy Books $ 650,000 10,000 Galaxy Book Flex $ 950,000 10,000 Required: 1. Compute the activity rate for the customer support cost for each laptop model. 2. Prepare a customer profitability report for each laptop model for (a) an order for 500 S models from a local college and (b) an order for 500 Flex models from a local hospital. The company budgets 500 support calls for both orders. 3. Which order, for Galaxy Book S or Galaxy Book Flex, earns the most income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a customer profitability report for each laptop model for (a) an order for 500 S models from a local college and (b) an order for 500 Flex models from a local hospital. The company budgets 500 support calls for both orders. (a) Customer Profitability Report-Galaxy Book S Cost of goods sold 0 0 Customer income $ 0 (b) Customer Profitability Report-Galaxy Book Flex Cost of goods sold 0 0 Customer income $ 0