10. (10 points) Cheng Corp. collected the following data for three customers. Gross sales HS $50,000 AD BW $65,000 $80,000 Sales discounts 2% 3%
10. (10 points) Cheng Corp. collected the following data for three customers. Gross sales HS $50,000 AD BW $65,000 $80,000 Sales discounts" 2% 3% 4% Number of orders 100 312 125 Number of deliveries 10 80 50 Expedited orders 0 2 5 Sales visits 12 4 "Sales discounts are applied to customer Gross Sales Cheng Corp. gathered the following data pertaining to activities: Activity Order processing Delivery Expedited orders Sales visits Cost Driver and Rate $75 per order $300 per delivery $500 per order $800 per visit a. Calculate the Operating Income for each customer above. b. Based on this analysis, which customer is most important to Cheng's long-term profitability? Explain why you believe this customer to be most important.
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Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
2nd edition
1934319309, 978-1934319307
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