(i) Design a customer profitability system based on Activity Based Costing (ABC) for Illusional Optics. You will need to describe in detail the elements of this costing system justifying the activity cost pools and activity cost drivers included. Include in your answer the activity cost driver rates.
(ii) Using the new ABC customer profitability system your group has designed calculate and show the profitability of Illusional Optics’ five customer groups.
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