Preparing an analysis of sales orders. The Douglas Company has analyzed the sales of each of its salespeople. Data relating to the customers of Sandra Larson are shown below.

Costs for a salesperson to call on a customer are estimated to be $10 per call plus 2 percent of the sales volume of the order received. Costs for handling an order are estimated to be $3, plus 2 percent of sales.

a. Compute the estimated average contribution or average loss on each order that is under $200.

b. Compute the estimated average contribution or average loss on each order that is between $700 and $999, assuming that the average of such orders is $800.

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Monthly Sales $1,000 to $1,444 Number of Customers Gross Profit Rate (%) 3 26 700 to 999 22 27 500 to 699 20 28 300 to 499 18 29 200 to 299 15 30 Under $200 (average, $120) 12 30