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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. table [ [ , Jerry,,Kate ]
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers.
tableJerry,,KateNumber of onders,Incorporated,CorpanyUnits per order,Sales returns:, bea,Number of returns,Total units returned,Number of sales calls,
Colleen sells its products at $ per unit. The firm's gross margin ratio is Both Jerry and Kate pay their accounts promptly and no accounts receivable is over days. After using business analytics software to carefuly analyze the operating data for the past months, the firm has determined the following activity costs:
tableActivitySales calls,$ per visit cost oriver and RateOrder processing, per orderDeliveries per orderSales returns, per return and $ per unit returnedSales salary, per month
Required:
Using customers as the cost objects, classify the activity costs into cost categories unitlevel, batchlevel, etc. and compute the total cost for Colleen Company to service Jerry. Incorporated and Kate Company.
Compare the profitability of these two customers.
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Using customers as the cost objects, classify the activity costs into cost categories unitlevel, batchlevel, etc. and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company.
tabletableJerryIncorporatedKate CompanyCustomer unit level costs:,,Cost of goods sold,,Customer batch level costs:,,Customer sustaining costs:,,
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