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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

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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 30 Units per order 3,000 130 Sales returnst Number of returns 4 6 Total units returned 60 190 Number of sales calls 8 3 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 Driver and Rate S 800 per visit 260 per order 390 per order 240 per return and $4 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch the total cost for Colleen Company to service Jerry, Inc. and Kate Co. Jerry Inc Kate Co. $ 240 $ 780 Customer unit level cost Sales return Customer batch level costs: Order processing Sales return 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 Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch the total cost for Colleen Company to service Jerry, Inc. and Kate Co. Jerry Inc. Kate Co. Customer unit level costs: $ 240 $ 760 Customer batch level costs: Customer sustaining costs: 6,400 6,640 2,400 3,160 Total $ $ Roured 1 Required 2 > Jerry, Inc. Dat 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 min margin (loss) to 2 decimal places (1.e. .2134 should be entered as 21.34%).) Jerry Inc. Kate Co. Net sales $ 0 0 0 S 0 Operating income (loss) Operating margin (loss) %

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