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Case 4 ABC is a new company that manufactures custom jewellery. ABC currently has six customers named Ahmed, Amna, Yousif, Maryam, John and Khalid. Besides
Case 4 ABC is a new company that manufactures custom jewellery. ABC currently has six customers named Ahmed, Amna, Yousif, Maryam, John and Khalid. Besides the cost of making the Jewellery, ABC Company has the following activities: 1. Customer orders. The salespeople, designers, and jewellery makers spend time with the customer. The cost driver rate is $42 per hour spent with the customer. 2. Customer fittings. Before the jewellery piece is completed, the customer may come in to make sure it looks right and fits properly. Cost driver rate is $30 per hour. 3. Rush orders. Some customers want their jewellery quickly. The cost driver rate is $90 per rush order. 4. customer return visits. Customers may return jewellery up to 30 days after the pickup of the jewellery to have something refitted or repaired at no charge. The cost driver rate is $40 per return visit. You are provided with information about the six customers. Some of the customers purchased multiple items. The cost of the jewellery is 60% of the selling price. You are provided with information about the six customers. Some of the customers purchased multiple items. The cost of the jewellery is 60% of the selling price. Required: Calculate the customer level operating income for each customer
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