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Exercise 5-35 (Algo) Customer Profitability Analysis (LO 5-6) Colleen Company has gathered the following dota pertaining to activities it performed for two of its major

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Exercise 5-35 (Algo) Customer Profitability Analysis (LO 5-6) Colleen Company has gathered the following dota pertaining to activities it performed for two of its major customers. Serry, Foto Incorporated Company Number of orders 3 30 Units per order 2.000 460 Sales return Number of returns 1 3 Total units returned 40 150 Number of solos call 11 3 Colleen sells its products at $210 per unit. The firm's gross margin ratio is 20%. 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 Cont Driver and Rate Sales oalla $700 per visit Order processing 270 per order Deliveries 330 per order 260 por return and $3 per unit returned Sales salary 104,000 per month 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. Sales return 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 Jerry Incorporated Kate Company Customer unit level costs Customer batch level costs Customer sustaining costs Total 5 0 $ o Required: Required 2 > 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 (te, 02134 should be entered as 21.34%) Jerry Incorporated Kate Company Net sales 0 0 0 Operating income (10) Operating margin (los) %

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