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

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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Jerry, Inc. 6 Kate Co. Number of orders 30 Units per order Sales returns 340 1,000 Number of returns 4 6 Total units returned 30 160 Number of sales calls 9 3 Colleen sells its products at $180 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 Cost Driver and Rate 800 per visit 240 per order 450 per order 300 per return and $6 per unit returned 103,000 per month S Order process ing Deliveries Sales returns Sales salary 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 2 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. Jerry Inc. Kate Co. Customer unit level costs: 180 960 Customer batch level costs Customer sustaining costs: 7,200 2,400 7,380 $ Total 3,360 Required 1 Required 2 > 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 decimal places (i.e. .2134 should be entered as 21.34%).) Jerry Inc. Kate Co. Net sales $ 0 C 0 C Operating income (loss) Operating margin (loss) % Required 1 Required 2

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