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Earng Delights is a new company that manufactures custom jewelry. Earing Delights currently has six customers referenced by customer number: 01, 02, 03, 04, 05,
Earng 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 to view the activities) (Click 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 01 02 03 04 06 i Data Table Revenue $ 600 $ 380 5,300 $ 3,180 260 S 156 2.500 5 1.500 05 4,900 $ 2,940 850 510 Cost of product Gross profit Customer-level costs Customer orders Customer fittings Rush order costs Information about the customers follows. Some customers purchased multiple items. The cost of the jewelry is 80% of the selling price Customer number 01 02 03 04 05 06 Sales revenue S 600 $ 5,300 $ 260 $ 2,500 $ 4,900 S $ 850 Cost of tem(s) S 360 $ 3,180 $ 156 1,500 $ 2,940 S 510 Hours saent on custamor arder 2 2 7 15 4 1 Hours an fittings 1 2 D 4 6 0 Number of rush orders 1 0 1 1 2 0 0 0 0 Number of return visits 1 0 D D D 2 5 1 Returns for repair Customer-level operating income (1088) 0 More Info Print Done 1. 1 Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost driver rate is $20 per hour spont 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. Crest driver rale is $20 per hour 3. Rush orders. Some customers want their jawelry quickly. The cost driver rate is S120 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 $32 per return visit. Print Done
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