Mullica River PM Cloud Software, Inc. sells five (5) highly sophisticated and integrated information system analytics products, identified as Product: Optimization Analytics, Descriptive Analytics, Predictive Analytics, Prescriptive Analytics, and Financial Performance. You are being asked to determine the profitability of one customer and also determine the customer profit margin, by product sold. Cape Atlantic Analytic Associates, LLC is the customer in question and management is concerned that the operations result are not truly indicative of operation costs and are looking to evaluate the profitability of the customer. You are given two informational tables, one with detail information for each of the products and another table for the purpose of calculating the ABC activity rates (POR). Mullica River PM Cloud Software, Inc. has recently implemented an ABC system. The system Implemented activity cost pools for the following: Activity Cost Pool Activity Rate Consulting support ? - to be calculated per Direct Labor Hour Fee structure support ? - to be calculated per order processed Implementation design ? - to be calculated per custom design Design analysis ? - to be calculated per Direct Labor Hour Customer service ? - to be calculated per Customer The detail information in the first table indicate the selling price per unit, the direct material and direct labor costs, and the ABC activity costs per product. Complete the first table indicating the revenues and cost for each product and in total. Calculate the product profit margin for each product and the total customer margin for the customer. Also calculate the total customer profit margin percent for the customer Customer Service (Activity Pool) is a customer level activity-all other activity pools are product level costs. I.e. you should only charge Customer Service once to the customer and not to any particular product. Mullica River PM Cloud Software, Inc. Customer: Cape Atlantic Analytic Associates, LLC Product: Product: Product: Product: Optimization Descriptive Predictive Prescriptive Analytics Analytics Analytics Analytics Product: Financial Performance Total Revenues Direct Materials Direct Labor Fee structure support Implementation design 11 Design analysis Customer service 13 Total Costs 15 Product profit margin 16 Customer profit margin 17 Customer Profit Margin % i Product Related Information Product: Product: Product: Optimization Descriptive Predictive Analytics Analytics Analytics Product: Prescriptive Analytics Product: Financial Performance 22 Number of products 128 184 23 Number of orders 160 24 Number of custom designs 25 D/L Hours per product 78.50 92.50 108.00 94.00 42.50 26 Selling price per product 14,995$ 16,995 $ 12,995 $ 10,995 $ 8,995 27 D/M cost per product 450 $ 980 $ . 650 S 480 $ 720 S 28 D/ per hour 21.75 $ 32.50 $ 70.00 $ 37.50 $ 25.00 ABC Costing - Activity Cost Pool POR Rate Analysis Activity Rate Calculation im Activity Cost Pool Est. Cost Pool Est. Cost Driver POR Rate Basis 34 Consulting support $ 10,527, 192 404,892 S 26.00 per D/L Hour 35 Fee structure support $ 1,125,600 3,216 $ 350.00 per order 36 Implementation design $ 701,520 888 $ 790.00 per custom design 37 Design analysis 11,134,530 404,892 $ 27.50 per D/L Hour 38 Customer service 251,650 70 $ 3,595.00 per customer