Question: Gonalong, Inc. has 10 customers that account for all of its $4,520,000 of net income. Its activity-based costing system is able to assign all costs,

Gonalong, Inc. has 10 customers that account for all of its $4,520,000 of net income. Its activity-based costing system is able to assign all costs, except for $650,000 of general administrative costs, to key activities incurred in connection with serving its customers. A customer profitability analysis based on activity costing produced the following customer profits and losses:

Customer #1 $336,000

#2 634,000

#3 (277,000)

#4 979,000

#5 1,060,000

#6 902,000

#7 628,000

#8 292,000

#9 (95,000)

#10 711,000
Total
$5,170,000

(a) Using the customer profitability analysis provided in the exercise to calculate the following profits.

(i) Calculate the total profits from the 3 most profitable customers

(ii) Calculate the total profits for the 5 most profitable customers

(iii) Calculate the total profits for the 8 most profitable customers

(iv) Calculate the total profits for the 9 most profitable customers

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