Abetx Abbcd AaBbc Albcc AaB Aabbcct Abc Aabcc AaBbcc Aabc A Normal No Space Heading! Heading 2 Title Subtitle Subtle Emphasis intense Strong C Paragraph Styles Question 1: Managing Customers Custom course packets has hired you to calculate the profitability of its three customer groups. Here are the revenues and directly traceable cost for each customer group Individual Corporate University total customer customer Customer Revenues S600000 $750000 $700000 52050000 Direct cost $450000 $562500 $525,000 $1507500 4 In addition, there are $130000 in costs that cannot be directly traced to the custoner group. You have decided to use activity based costing to allocate the cost to each customer group. Here are the cost pools (along with the respective activity base) for the company as a whole Activity Cost pool Activity Base Quantity Ordering cost $80000 No of customer orders 40000 Product desenest $20000 No of product design 400 Customer service cost $30000 No. of customer 500 complaints Below are the activity levels for each customer type Individual customers No of customer orders 30000 No of product designs 220 No of customer 250 complaints Corporate customers 15000 110 University customers 13000 130 190 150 Question 1 Prepare a customer profitability analysis for each customer group and comment on the relative profitability, Word limit 100 alb Would you recommend dropping the customer group that generate the lowest profit? Explain your answer. Word limit 100 ate individual customer satisfaction desno necessarily lead to customer profitability. Moreover, there are many other factors that may assist in understanding and managing the firm customers. Explain the statement. Word limit 200 2: hp