using ABC method to create detailed management reports to compute the customer margin.

1) compute customer margin for Abbotsford furniture.

2) compute customer margin for BC interior store.

3) compute customer margin for south Regina mall.

Exhibit 1 ESF Cost Classifications for the Year 2020 Cost items Amounts Direct Materials Direct Labor Manufacturing Overhead Selling/Marketing Administration Salesroom Utilities and Fuel 6,491 6,491 Office Equipment Depreciation 8,400 8,400 Other Administrative Expenses 11,548 11,548 Factory Miscellaneous Components 13,142 13,142 Manufacturing Maintenance Supplies 17,373 17,373 Production Cleaning Supplies 24,993 24,993 Manufacturing Maintenance 25,224 25,224 Property Taxes - Factory 25,520 25,520 Amortization - Factory Machinery 28,555 28,555 Office Maintenance 38,718 38,718 Shipping Costs 42,893 42,893 Furniture Accessories 46,013 46,013 Salesroom Building Depreciation 48,600 48,600 Fibber Filling 50,856 50,856 Promotional Materials 120,283 120,283 Factory Building Insurance 62,013 62,013 Salesroom Property Taxes and Insurance 65,283 65,283 Amortization-Factory Building 68,750 68,750 Advertising 71,852 71,852 Factory Utilities 81,417 81,417 Production Supervisor Salary 90,000 90,000 Salespeople Travel 92,788 92,788 Warehouse Wages 152,817 152,817 Sales Staff Commissions 249,133 249,133 Timber furniture components 311,416 311,416 Administrative Wages 368,000 868,000 Production payroll 934,248 934,248 Total Expenses and Costs 3,056,326 311,416 934,248 533,856 697,323 579,483Exhibit 7 Earl Smith Furniture (ESF) Sample of Three Customers Information from 2020 Abbotsford Furniture BC Interiors Store South Regina Mall Sales $ 437,500 $ 131,250 $ 87,500 Cost of goods sold 250,000 75,000 50,000 Driver base Driver quantity Driver quantity Driver quantity # of sales calls 14 18 8 Negotiation hours 4 13 10 # of orders 19 62 3 # of new customers * 0 0 1 Pound miles 1,877,000 4,862,000 4,692,000 Support hours 7 29 31 * Only the third customer is a new customer