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Exercise 8-17 The Pembina Corporation has analyzed its customer and order handling data for the past year and has determined the following costs: Order processing
Exercise 8-17 The Pembina Corporation has analyzed its customer and order handling data for the past year and has determined the following costs: Order processing cost per order $ 10 Additional costs if order must be expedited (rushed) $ 10 Customer technical support calls (per call) $ 12 Relationship management costs (per customer per year) $1,950 In addition to these costs, product costs amount to 83 percent of sales. In the prior year, Pembina had the following experience with one of its customers, the Julius Company: Sales Number of orders Percent of orders marked rush Calls to technical support $21,100 160 80% 94 Calculate the profitability of the Julius Company account. (Enter loss using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Profit / (Loss) $ Click if you would like to Show Work for this question: Open Show Work
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