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this is a lecture from open tuition to benefit from the lecture you should download the free lecture notes from open tuition calm all right lets carry on with chapter 1 at the paper b2 lecture notes and in the previous lecture hairy bodies activity-based costing where we were getting the cost per unit for each product helped us fix the selling price look at the profitability and so on but if ever be - we can take a little bit further and use exactly the same sort of approach the same sort of thinking we and to examine how profitable our customers are and to show you what I mean the first of two examples exercise three have a read with me lets use this as I said to explain the logic of what were doing it how we go about it Vilnius limited manufactures components for the heavy goods vehicle industry and the following annual information regarding three of its key customers is available well as youd expect we know the gross margin so much less than manufacturing cost the gross margin