Do not give solution in image format Required:a. What is the excess of gross margin over customer costs for each category of customer?b. Which customers are more profitable?Complete this question by entering your answers in the tabs below.Required A Required BWhat is the excess of gross margin over customer costs for each category of customer?DiamondPlatinumTotal gross marginCustomer representative salariesCustomer representative bonusesPerquisite costsNet profitRequired ARequired B >Base Problem 10-65 (Algo) Customer Profitability (LO 10-4)Kresge Lodging has an elite program for its card members. There are three levels, based on total nights stayed: Diamond (50 nights ormore); Platinum (25 nights or more); and Base (fewer than 25 nights). In order to facilitate reservations and answer customer questions,Kresge Lodging provides access to special customer service representatives, who work exclusively with the designated level(Diamond, and so on). Customer representatives receive salaries plus bonuses of 5 percent of customer gross margin. The companyprovides various perquisites (free nights, upgrades, and so on) to its members, with 75 percent of the cost of the perquisites used forthe benefit of Diamond members, 20 percent for Platinum members, and 5 percent for Base members.Customer CostsNumber of membersAverage customer representative salaryNumber of representativesTotal171,50028$ 7,880,000Diamond24,000$ 85,00015Platinum$ 1,20061,500$ 56,0008Perquisite costsAverage annual gross margin per customerThe gross margin received by Kresge is the amount received from the participating hotels for a customer's stay.Base86,000$ 44,0005$ 400$ 200

Diamond Platinum Base Total Gross Margin $28,800,000.00 $24,600,000.00 $17,200,000.00…

a. What is the excess of gross margin over customer costs for each category of customer? b. Which customers are more profitable? Complete this question by entering your answers in the tabs below. Required A Required B What is the excess of gross margin over customer costs for each category of customer? Diamond Platinum Total gross margin Customer representative salaries Customer representative bonuses Perquisite costs Net profit Required A Required B > Base