=+*Janice has determined that 25% of her overhead costs relate directly to her architectural business, 40% relate directly to her window treatment business and the remainder is general in nature.

370 Chapter 9: Pricing decisions and customer-profitability analysis M09_HORN3377_02_LT_C09.indd 370 2/09/13 3:45 PM Janice gave a 10% discount to Attractive Abodes in order to lure it away from a competitor, and gave a 5% discount to Elegant Extras for advance payment in cash.

Required 1 Prepare a customer-cost hierarchy report for Interiors by Jay, using the format in Figure 9-3.