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Cinrich Corporation has analyzed its customer and order handling data for the past year and has determined the following costs: Order processing cost per

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Cinrich Corporation has analyzed its customer and order handling data for the past year and has determined the following costs: Order processing cost per order $ 8 Additional costs if order must be expedited (rushed) $ 11 Customer technical support calls (per call) $ 13 Relationship management costs (per customer per year) $ 1,710 In addition to these costs, product costs amount to 82 percent of sales. In the prior year, Cinrich had the following experience with one of its customers, the Crane Company: Sales $21,700 Number of orders 160 Percent of orders marked rush 80% Calls to technical support 92

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