Dynatech Conference Solutions specializes in the design and installation of meeting and conference centers for large corporations. When bidding on jobs, the company estimates product cost and direct labor for installers and marks up the total cost by 30 percent. On a recent job for Blossom Industries, the company set its price as follows: The job turned out to be a big hassle. Blossom requested 24 change orders, although the dollar value of the products it requested changed very little. The company also returned 33 items that had extremely minor flaws (scratches that were barely visible and would be expected in normal shipping). Blossom also requested seven meetings with designers taking 42 hours before its plan was finalized. Normally, only two or three meetings are necessary. Mary Smith, controller for Dynatech, decided to conduct a customer profitability analysis to determine the profitability of Blossom. She grouped support costs into three categories with the following drivers: Dynatech Conference Solutions has decided to adopt an activity-based pricing scheme. On future jobs, the company will charge a 30 percent markup on the sum of product costs plus installer salaries. In addition, the company will charge $279 per change order, $95 per product return for products that are in excellent condition, and $83 per meeting hour with a Dynatech conference room designer. What would the profit be on the order from Blossom? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Dynatech Conference Solutions specializes in the design and installation of meeting and conference centers for large corporations. When bidding on jobs, the company estimates product cost and direct labor for installers and marks up the total cost by 30 percent. On a recent job for Blossom Industries, the company set its price as follows: The job turned out to be a big hassle. Blossom requested 24 change orders, although the dollar value of the products it requested changed very little. The company also returned 33 items that had extremely minor flaws (scratches that were barely visible and would be expected in normal shipping). Blossom also requested seven meetings with designers taking 42 hours before its plan was finalized. Normally, only two or three meetings are necessary. Mary Smith, controller for Dynatech, decided to conduct a customer profitability analysis to determine the profitability of Blossom. She grouped support costs into three categories with the following drivers: Dynatech Conference Solutions has decided to adopt an activity-based pricing scheme. On future jobs, the company will charge a 30 percent markup on the sum of product costs plus installer salaries. In addition, the company will charge $279 per change order, $95 per product return for products that are in excellent condition, and $83 per meeting hour with a Dynatech conference room designer. What would the profit be on the order from Blossom? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
