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Draft a new customer profitability statement for both alpha hospital and beta hospital using new activity drivers shown below. Work through the following numerical exercise
Draft a new customer profitability statement for both alpha hospital and beta hospital using new activity drivers shown below.
Work through the following numerical exercise by filling in the template provided: (A) You are an account manager at Owens & Minor. You have two customers on a stockless program. Below are each customer's activity levels, activity rates, and customer level costs. See Alpha Hospital-Customer Profitability Statement (Exhibit 4 in Owens & Minor, Inc. Case A). Draft a customer profitability statement for Beta Hospital by filling in the template provided Activity Rates Edi Order Cost Non-Edi Order Cost Line Cost Delivery Cost Interest Cost Emergency Order Cost Shipping and Handling Cost $4.50/edi order $9.01/non-edi order $0.66/line $457.58/delivery 8.64% per annum $25/emergency order $130/delivery Activity Levels Sales/month Orders/month Lines/month Deliveries/month % EDI orders Accounts Receivable Emergency Orders/Month Vendor Discounts Cost-Plus % Customer Level Costs Procurement S Labeling Alpha Hospital S Account Mgmt Occupancy Group Fees 150,000 $ Beta Hospital 750 15,000 12 25% $300,000 20 $4035 15.0% 1,486 1,000 $75,000 991 1,007 750 150,000 333 10,000 10 95% 10 $4035 15.0%
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Step: 1
A Given the information provided in the case study for Owens Minor we are tasked with creating a customer profitability statement for Beta Hospital by using the activity levels activity rates and cust...Get Instant Access to Expert-Tailored Solutions
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