Blue Ridge Case - Activity Based Costing (ABC)

1) Profitability Analysis:
Blue RidgeLargeMediumSmallTotal
Sales$308,762.00$183,744.00$318,024.00$810,530.00
Manufacturing Costs$112,552.70$72,164.09$162,864.09$347,580.88
Sales and Administration Costs$78,303.47$50,790.54$156,805.99$285,900.00
Total Costs$190,856.16$122,954.63$319,670.08$633,480.88
Cost as % Sales61.81%66.92%100.52%78.16%
Profit$117,905.84 $60,789.37 ($1,646.08)$177,049.12
Profit Margin38.19%33.08%-0.52%21.84%
Note: For detailed calculations please reference attached document.
2) Define action steps for Blue Ridge based on the analysis:
The above customer profitabil…