Leahy, Inc. has 10 customers that account for all of its $1,472,000 of net income....
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Leahy, Inc. has 10 customers that account for all of its $1,472,000 of net income. Its activity-based costing system is able to assign all costs, except for $200,000 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
$ 350,000
#2
262,000
#3
(75,000)
#4
240,000
#5
50,000
#6
375,000
#7
(100,000)
#8
325,000
#9
225,000
#10
(180,000)
Total
$ 1,472,000
Prepare a customer profitability profile graph in Excel like the one in Exhibit 19.3. & please explain and show how to make the graph.
Exhibit 19.3 Customer Profitability Profile Graph Cumulative Total Profits $7.5 million $5 million Current Total Customer Profits 0 350 200 Customers from Most Profitable to Least Profitable Exhibit 19.3 Customer Profitability Profile Graph Cumulative Total Profits $7.5 million $5 million Current Total Customer Profits 0 350 200 Customers from Most Profitable to Least Profitable
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