Ceradyne Corporation has analyzed its customer and order handling data for the past year and has determined the following costs:

Order processing cost per order		$	10
Additional costs if order must be expedited (rushed)		$	11
Customer tech supp calls (per call)		$	14
Relationship management costs (per customer per year)		$	1,680

In addition to these costs, product costs amount to 79 percent of sales. In the prior year, Ceradyne had the following experience with one of its customers, the Crane Company:

Sales		$21,700
Number of orders		190
Percent of orders marked rush		80%
Calls to tech supp		86

For the coming year, the Ceradyne Corporation has told the Crane Company that it will be switched to an activity-based pricing system or it will be dropped as a customer. In addition to regular prices, Crane will be required to pay:

Order processing (per order)		$11
Additional handling costs if order marked rush (per order)		$21
Tech supp calls (per call)		$21

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Calculate the profitability of the Crane Company account if activity is the same as in the prior year. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Profit / (Loss)

$-4021

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Is it realistic to expect Cranes activity to be the same this year as the previous year if activity-based pricing is instituted? select between yes and no No