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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Derry, Inc. Kate Co. 6 30 3,080

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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Derry, Inc. Kate Co. 6 30 3,080 130 Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls 60 190 Colleen sells its products at $260 per unit. The firm's gross margin ratio is 20%. 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 Sales calls Order processing Deliveries Sales returns Sales salary Cost Oriver and Mate $800 per visit 260 per order 390 per order 240 per return and 54 per unit returned 90,000 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, Inc. and Kate Co. 2. Compare the profitability of these two customers 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, Inc. and Kate Co. 2. Compare the profitability of these two customers. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compare the profitability of these two customers. (loss amounts should be indicated by a minus sign. Round operating margin (loss).to.2 decimalelaces ....2134 should be entered as 21.34%)... Jerry Inc. Kate Co Nor salos S 0 $ 0 5 0 S 0 Operating income foss) Operating margin (los)

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