Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers.

	Jerry, Incorporated	Kate Company
Number of orders	5	60
Units per order	2,000	220
Sales returns:
Number of returns	3	5
Total units returned	30	190
Number of sales calls	13	6

Colleen sells its products at $290 per unit. The firms gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs:

Activity	Cost Driver and Rate
Sales calls	$1,000	per visit
Order processing	200	per order
Deliveries	440	per order
Sales returns	290	per return and $6 per unit returned
Sales salary	99,000	per month

Required:

1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company.

2. Compare the profitability of these two customers.