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

	Jerry Inc.				Kate Co.
Number of orders		6				60
Units per order		2,000				340
Sales returns:
Number of returns		4				6
Total units returned		40				150
Number of sales calls		12				3

Colleen sells its products at $200 per unit. The firms gross margin ratio is 20%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business intelligence 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	$ 800	per visit
Order processing	390	per order
Deliveries	140	per order
Sales returns	220	per return and $6 per unit returned
Sales salary	107,000	per month

Required:
1.	Classify activity costs into cost categories (unit, batch, etc.) and compute the total cost for Colleen Company to service Jerry Inc. and Kate Co.

2.	Compare the profitability of these two customers. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. .2134 should be entered as 21.34%).)