-11 Question 6 of 6 View Policies Current Attempt in Progress Richetti Conference Solutions specializes in the design and installation of meeting and conference centers for large corporations. When bidding on jobs, the company estimates product cost and direct labor for installers and marks up the total cost by 35 percent. On a recent job for Blossom Industries, the company set its price as follows: Product costs including podiums, seating, lighting, etc. Installer salaries Total Markup at 35 percent Bid price $174,600 25,300 199.900 69.965 $269,865 The job turned out to be a big hassle. Blossom requested 26 change orders, although the dollar value of the products it requested changed very little. The company also returned 34 items that had extremely minor flaws (scratches that were barely visible and would be expected in normal shipping), Blossom also requested seven meetings with designers taking 37 hours before its plan was finalized. Normally only two or three meetings are necessary. Sarah Allen, controller for Richetti, decided to conduct a customer profitability analysis to determine the profitability of Blossom She grouped support costs into three categories with the following drivers: e ere to search DOLL Question 6 of 6 Driver Change orders Number of returns Design meeting hours Annual Value of Driver 790 change orders 1,100 product returns 1,350 meeting hours Annual Cost $191,180 74,800 85,050 Calculate the indirect service costs related to the job performed for Blossom Industries. Change orders $ Returns Design hours Total $ eTextbook and Media Attempts: 0 a o e e here to search