E5-28 (similar to) Question Help * Vega Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr. Vega commented, "We apply ABC to determine product-line profitability. The same ideas apply to customer profitability, and we should find out our customer profitability as well." Vega Wholesalers sends catalogs to corporate purchasing departments on a monthly basis. The customers are entitled to return unsold merchandise within a 6-month period from the purchase date and receive a full purchase price refund. The following data were collected from last year's operations and Vega has calculated the following activity rates: BB (Click the icon to view the data.) (Click the icon to view the activity rates.) Customers pay the transportation costs. The cost of goods sold averages 70% of net sales. Requirement Determine the contribution to profit from each customer last year. Comment on your solution Begin by completing the statement through gross margin for each chain. Then calculate the customer related costs and the contribution margin (loss) for each chain. (Round your answers to the nearest whole number. Use parentheses or a minus sign when entering a contribution loss.) Chain 1. Gross sales Sales returns Net sales Cost of goods sold Gross margin Enter any number in the edit fields and 1 parts Data Table 4 - X Chain 1 2 Gross sales $ 65,000 S 3 40,000 $125,000 $ 85,000 4 Sales returns: Number of items 109 Sales returns: Amount 13,000 $ 22 6.000 S 84 46 8,750 $ 7.500 Number of orders: Regular 55 160 62 85 Number of orders: Rush 15 54 16 37 Print Done COM Abou Cheg Colleg Inswer Coroo