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Bling Beauty is a new company that manufactures custom jewelry. Bling Beauty currently has six customers referenced by customer number: 01, 02, 03, 04, 05,

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Bling Beauty is a new company that manufactures custom jewelry. Bling Beauty currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: - More info Requirements 1. 2. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $40 per hour spent with a customer. Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $24 per hour. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $100 per rush order. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $32 per return visit. 1. Calculate the customer-level operating income for each customer. Rank the customers in order of most to least profitable and prepare a customer-profitability analysis. 2. Are any customers unprofitable? What is causing this? What should Bling Beauty do about these customers? 3. 4. Requirement 1. Calculate the customer-level operating income for each customer. (Complete all answer boxes. Enter a "0" for any zero balances. Use parentheses or a minus sign when entering operating losses.) Customer 01 02 03 04 05 06 - Data table Revenue 700 $ 270 740 4,000 $ 2,400 2,600 $ 1,560 5,000 $ 3,000 420 162 444 Cost of product Gross profit Customer-level costs Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 60% of the selling price. Customer number 01 02 03 04 05 06 Customer orders Sales revenue $ 700 $ 4,000 $ 270 $ 2,600 $ 5,000 $ 740 Customer fittings 420 $ 2,400 $ 162 $ 1,560 $ 3,000 $ 444 Rush order costs Cost of item(s) Hours spent on customer order Hours on fittings 5 10 1 3 20 2 Returns for repair 1 1 0 2 3 1 Number of rush orders 0 2 1 1 2 0 Customer-level operating income (loss) Number of return visits 0 2 0 0 5

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