=+9-28 KK Customer-cost hierarchy, customer profitability OBJECTIVES 8, 10 Janice Nelson operates Interiors by Jay, an interior design consulting and window treatment fabrication business. Her business is made up of two different distribution channels, a consulting business in which Janice serves two architecture firms (Attractive Abodes and Better Buildings), and a commercial window treatment business in which Janice designs and constructs window treatments for three commercial clients (Cheery Curtains, Dream Drapes and Elegant Extras). Janice would like to evaluate the profitability of her two architecture firm clients and three commercial window treatment clients, as well as evaluate the profitability of each of the two divisions, and the business as a whole. Information about her most recent quarter follow:

Gross revenue from Attractive Abodes (AA) $58 500 Gross revenue from Better Buildings (BB) 47 200 Gross revenue from Cheery Curtains (CC) 89 345 Gross revenue from Dream Drapes (DD) 36 960 Gross revenue from Elegant Extras (EE) 18 300 Costs specific to AA 36 750 Costs specific to BB 29 300 Costs specific to CC 54 645 Costs specific to DD 28 930 Costs specific to EE 14 260 Overhead costs* 85 100