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

$\backslash$table$[[,$Jerry,,Kate$],[$Number of orders,Incorporated,Company$],[$Units per order,$6,30],[$Sales returns:,$1,080,420],[,$ Number of returns,$4,5],[$Total units returned,$50,148],[$Number of sales calls,$13,5]]$

Colleen sells its products at $$290$ 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:

$\backslash$table$[[$Activity$,],[$Sales calls,$$8$ee per visit$],[$Order processing,$180$ per order$],[$Deliveries$,410$ per order$],[$Sales returns,$270$ per return and $$3$ per unit returned$],[$Sales salary,$197,069$ per month$]]$

Requlred:

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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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$.0\mathrm{.}2134$ should be entered as $21\mathrm{.}34\%).)$

$\backslash$table$[[,\backslash$table$[[$Jerry$,],[$Incorporated$]],$Kate Company,$],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[$Opet sales,,,,$],[$Operating income $($loss$),,,,]]$