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Colleen Company has gathered the following data pertaining to actlvities it performed for two of Its major customers. Colleen sells its products at $260 per
Colleen Company has gathered the following data pertaining to actlvities it performed for two of Its major customers. 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 recelvable 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: Requlred: 1. Using customers as the cost objects, classify the activity costs Into cost categorles (unlt-level, batch-level, etc.) and compute the tota cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2. Compare the profitability of these two customers. Complete this question by entering your answers in the tabs below. 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. 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. 0.2134 should be entered as 21.34% ).)
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