Overloon BV is a repair-service company specialising in the rapid repair of photocopying machines. Each of its 10 clients pays a fixed monthly service fee (based on the type of photocopying machines owned by that client and the number of employees at that site). Overloon keeps records of the time technicians spend at each client as well as the cost of the equipment used to repair each photocopying machine. Overloon recently decided to calculate the profitability of each customer. The following data (in thousands) pertain to May 2018: 

Required

1. Calculate the operating profit of each customer. Prepare exhibits for Overloon that are similar to Exhibits 12.11 and 12.12. Comment on the results. 

2. What options regarding individual customers should Overloon consider in light of your customer profitability analysis in requirement 1? 

3. What problems might Overloon encounter in accurately estimating the operating cost of each customer?

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Customer revenues Customer costs Hytop BV Koninklijk Nederlands Meteorologisch Instituut Hoogovens Scrap Processing Borgh Pensioen Consultancy Edah Supermarkten Hogeschool Eindhoven €260 €182 180 184 163 178 322 225 235 308 80 74 Koninklijk Instituut voor de Marine Eindhovens Dagblad Randmeer College 174 100 76 108 137 110 NRC Handelsblad 373 231