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 jewelry, the company has the following activities: (Click the icon to view the activities.) (Click the icon to view the customer data.) 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.) Customer 0 More Info -X 01 02 03 04 05 06 Revenue $ 800 $ 480 4,800 $ 2,880 350 S 210 2,900 $ 1,740 5,100 $ 3,060 680 408 Cost of product 1. Gross profit 320 1,920 140 1,160 2,040 272 2. Customer-level costs Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $46 per hour spent with a customer. 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 $24 per hour. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $125 per rush order. 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 $30 per return visit. 230 368 92 276 782 92 3. Customer orders Customer fittings Rush order costs 48 120 24 48 144 0 4. 0 0 125 250 500 0 0 0 0 60 90 Returns for repair 30 Print Done $ 42 $ 1.432 $ (101) $ 526 $ 524 $ 150 Customer-level operating income (loss) Rank the customers in order of most to least profitable and prepare a customer-profitability analysis in terms of operating income. (Use parentheses or a minus sign when entering negative numbers and losses. Enter percents rounded to two decimal places, X.XX%) Cumulative Customer- - X Data Table Cumulative Customer Customer-Level Oper. Income Revenue Customer Customer-level Number Oper. Income Customer-Level Level Oper. Income as a % of Total Customer- Level Oper. Income % Revenue Oper. Income % % % % % Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 60% of the selling price. Customer number 01 02 03 04 05 06 Sales revenue $ 800 $ 4.800 $ 350 $ 2,900 $ 5,100 $ 680 Cost of item(s) $ 480 $ 2,880 $ 210 $ 1,740 $ 3,060 $ 408 Hours spent on customer order 5 8 2 6 17 2 Hours on fittings 2 5 1 2 6 0 Number of rush orders 0 0 1 1 2 4 0 % % % % % % Choose from any list or enter any number in the input fields and then click Check Answer. Number of return visits 0 0 0 2 3 1
