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Leahy, Inc. has 10 customers that account for all of its $1,472,000 of net income....

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Accounting

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

image

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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