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Exercise 5-35 (Algal Customer Protability Analysis [LO 5-6] Colleen Company has gathered the foliowing data pertaining to activities it performed for two of its major

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Exercise 5-35 (Algal Customer Protability Analysis [LO 5-6] Colleen Company has gathered the foliowing data pertaining to activities it performed for two of its major customers. Jerry, Kate Incorporated Company Number of orders 4 66 Units per order 3,066 220 Sales returns: Number of returns 2 5 Total units returned 58 169 Number of sales calls 16 E Colleen sells its products at $200 per unit. The firm's gross margin ratio is 30%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days, After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Cost Driver and Rate Sales calls $980 per visit Order processing 390 per order Deliveries 496 per order Sales returns 21% per return and $3 per unit returned Sales salary 95,000 per month Required: 1. Using customers as the cost objects. classify the activity costs into cost categories [unitlevel, batch-IeveI' etc} and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2 Compare the profitability ofthese two customers. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using customers as the cost objects, classify the activity costs into cost categories [unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. Customer unit level costs: Customer batch level costs: Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level. batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2. Compare the profitability of these two customers. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using customers as the cost objects, classify the activity costs into cost categories [unitlevel, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. Customer unit level costs: Customer batch level costs: Customer sustaining costs: Required 2 ) Required: 1. Using customers as the cost objects, classify the activity costs into cost categories {unitlevel, batchlevel, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2. Compare the profitability of these two customers. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compare the profitability of these two customers. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).j Operating income (loss) Operating margin [loss] ( Required 1

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