Apply an ABC system to allocate costs when the customer is the cost object.
-Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:
The company has the following information regarding Enbright Ltd. and Jackson Inc.:
Sales for Enbright and Jackson are $280,000 and $148,000 respectively. The cost of goods sold on these sales are the same at 52%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Enbright and Jackson.

Question

Apply an ABC system to allocate costs when the customer is the cost object.
-Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:
  The company has the following information regarding Enbright Ltd. and Jackson Inc.:
  Sales for Enbright and Jackson are $280,000 and $148,000 respectively. The cost of goods sold on these sales are the same at 52%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Enbright and Jackson.

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The Answer of Apply an ABC system to allocate costs when the customer is the cost object.
-Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:
  The company has the following information regarding Enbright Ltd. and Jackson Inc.:
  Sales for Enbright and Jackson are $280,000 and $148,000 respectively. The cost of goods sold on these sales are the same at 52%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Enbright and Jackson.

Apply an ABC System to Allocate Costs When the Customer