Apply an ABC system to allocate costs when the customer is the cost object.
-Boxwood 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 Ecobright and Samson are $285,000 and $146,000 respectively. The cost of goods sold on these sales are the same at 48%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Ecobright and Samson.

Question

Apply an ABC system to allocate costs when the customer is the cost object.
-Boxwood 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 Ecobright and Samson are $285,000 and $146,000 respectively. The cost of goods sold on these sales are the same at 48%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Ecobright and Samson.

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The Answer of Apply an ABC system to allocate costs when the customer is the cost object.
-Boxwood 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 Ecobright and Samson are $285,000 and $146,000 respectively. The cost of goods sold on these sales are the same at 48%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Ecobright and Samson.

Apply an ABC System to Allocate Costs When the Customer