Measuring customer profitability in a service firm California Utility Engineers (CUE) is a consulting firm that provides a variety of engineering services to utility companies. The firm's primary service is as architect-engineers on the construction of new power plants. This service often leads to other engineering services before and after the construction project is complete.

Currently the firm is working on two power plant construction projects and for two other clients on designing new transmissions lines and substations. Below are some cost and activity data for the four clients.

Cal-Pac Power and West-Coast Electric currently are building power plants. Power plant construction services tend to require CUE'S most skilled and highest paid personnel. The average billing rate is $100 per hour, and the average personnel cost is $40 per hour.
A recent detailed analysis of specific operations has revealed the following:

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Personnel hours Revenue Direct supplies costs Direct travel charges Power Plants Transmission Lines Cal-Pac West-Coast West-Basin North-Coast Power Electric Electric Energy 70,000 40,000 35,000 15,000 $10,000,000 $6,000,000 $3,000,000 $1,000,000 120,000 150,000 65,000 40,000 660,000 765,000 285,000 160,000 In addition to the charges listed above the firm incurred the following costs: Main office expenses Office supervision .. Temporary field office Field supervision.. $4,500,000 800,000 2,400,000 600,000