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Cortez Corporation has analyzed its customer and order handling data for the past year and has determined the following costs: Order processing cost per order
Cortez Corporation has analyzed its customer and order handling data for the past year and has determined the following costs: Order processing cost per order $6 $9 Additional costs if order must be expedited (Rushed) Customer technical support calls (Per call) Relationship management costs (Per customer per year) $7 $1,900 In addition to these costs, product costs amount to 80 percent of sales. In the prior year, Cortez had the following experience with one of its customers, Green Company Sales $25,000 Number of orders 170 Percent of orders marked rush 80 Calls to technical support 90 Calculate the profitability of the Green Company account
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