Earing Delights is a new company that manufactures custom jewelry. Earing Delights currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewely, the company has the following activities: (Click the icon to view the activities) Read the requirements. Requirement 1. Calculate the customer-level

operating income for each customer. (Complete all answer boxes. Enter a "0" for any zero balances. Use parentheses or a minus sign when entering operating losses.) Revenue Cost of product Gross profit Customer-level costs Customer orders Customer fittings Rush order costs Returns for repair Customer-level operating income (loss) (Click the icon to view the customer data.) 01 600 S 360 02 4,200 S 2,520 03 Customer 260 S 156 04 2,700 S 1,620 05 4,700 S 2,820 06 650 390

More info 1. Customer orders. The salespeople, designers, and jewelry]makers spend time with the customer. The cost-driver rate is $40 per hour spent with a customer. 2. Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $30 per hour. 3. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $95 per rush order. 4. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $28 per return visit. Data table Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 60% of the selling price. Requirements 1. Calculate the customer-level operating income for each customer. Rank the customers in order of most to least profitable and prepare a customer-profitability analysis. 2. Are any customers unprofitable? What is causing this? What should Earing Delights do about these customers