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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

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 530
Units per order 1,000200
Sales returns:
Number of returns 25
Total units returned 40175
Number of sales calls 124
Colleen sells its products at $200 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 300 per order
Deliveries 500 per order
Sales returns 100 per return and $5 per unit returned
Sales salary 100,000 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.

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