cost accoutningColleen 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 $$200$ per unit. The firm$$s 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. $($just need number $2),$ Required $1$

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

$\backslash$table$[[,,\backslash$table$[[$Jerry$,],[$Incorporated$]],,$Kate Company,$],[$Sales$,\backslash$gamma $,$$$1,000,000,$$$,$$$1,200,000,],[$Sales returns,V$,200\backslash$times $,,875$x$,],[$Net sales,,$999,800,,1,199,125,],[$Cost of goods sold,O$,4,200\backslash$times $,,,],[$Gross margin,O$,995,600,,1,199,125,],[$Sales support costs,grad,,,,$],[$Operating income $($loss$),,$$$,233,600$x$,$$$,270,625\backslash$times $,],[$Operating margin $($loss$),,23\mathrm{.}36,\%,22\mathrm{.}55\backslash$times $,\%]]$