Alternate Problem P14-32 (algo) Question Help Maine Manufacturing makes a component called B2040. This component is manufactured only when ordered by a customer, so Mississippi keeps no inventory of B2040. The list price is $120 per unit, but customers who place "large" orders receive a 12% discount on price. The customers are manufacturing firms. Currently, the salespeople decide whether an order is large enough to qualify for the discount. When the product is finished, it is packed in cases of 10. If the component needs to be exchanged or repaired, customers can come back within 14 days for free exchange or repair. (Click the icon to view the data.) (Click the icon to view the activities and cost drivers.) Read the requirements. Requirement 1. Calculate the customer-level operating income for these five customers. Use the format provided. Prepare Begin by calculating the customer-level operating income for these five customers. (For accounts with a $0 balance, make A i Data Table B D E Information about Maine's five biggest customers follows: Gross margin Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Number of units purchased Discounts given Number of orders Number of cases Number of rush orders Number of units exchanged/repaired 70 Customer A B C D E 4,900 12% 1,500 2,000 3,900 8,000 12% 0% 12% 12% on half the uni 5 17 47 26 23 580 170 90 480 780 2 7 1 0 7 17 110 11 70 240 All customers except E ordered units in the same order size. Customer E's order quantity varied, so E got a discount part of the time but not all the time. Alternate Problem P14-32 (algo) Question Help Maine Manufacturing makes a component called B2040. This component is manufactured only when ordered by a customer, so Mississippi keeps no inventory of B2040. The list price is $120 per unit, but customers who place "large" orders receive a 12% discount on price. The customers are manufacturing firms. Currently, the salespeople decide whether an order is large enough to qualify for the discount. When the product is finished, it is packed in cases of 10. If the component needs to be exchanged or repaired, customers can come back within 14 days for free exchange or repair. (Click the icon to view the data.) (Click the icon to view the activities and cost drivers.) Read the requirements. Requirement 1. Calculate the customer-level operating income for thes Begin by calculating the customer-level operating income for these five Gross margin A Requirements X Data Table 1. Calculate the customer-level operating income for these five customers. Use the format provided. Prepare a customer-profitability analysis by ranking the customers from most to least profitable. 2. Discuss the results of your customer-profitability analysis. Does Maine have unprofitable customers? Is there anything Maine should do differently with its five customers? The full cost of manufacturing a unit of B2040 is $92. In addition, Maine incurs customer-level costs. Customer-level cost-driver rates are: Order taking Product handling Rush-order processing Exchange and repair costs $330 per order $16 per case $550 per rush order $75 per unit Print Done Print Done 70