Question
Financial data for Bingham Company for last year appear below: Bingham Company Year ended December 31, 2019 Customer: A011 B123 C234 F325 G020 Units sold:
Financial data for Bingham Company for last year appear below:
Bingham Company
Year ended December 31, 2019
Customer: A011 B123 C234 F325 G020
Units sold: Cases 2,080 8,750 60,800 31,800 3,900
Listed Price: $14.40 $14.40 $14.40 $14.40 $14.40
Actual Price : $14.40 $14.16 $13.20 $13.92 $12.96
Cost: $11.00 $11.00 $11.00 $11.00 $11.00
Net:
Totals
Purchase Orders 15 25 30 25 30
Cost:
Site Visits: 2 3 6 2 3
Cost:
Deliveries 10 30 60 40 20
Distance- KMs 14 4 3 8 40
Rush Orders 0 2 0 0 3
Communication:
Phone Calls in hours 5 5 15 17 20
E-mails/Letters 6 6 5 5 6
Activity Cost per Driver Rate
Order Taking $100 per purchase order
Site visits $ 80 per customer
Deliveries $ 2 per KM
Product handling $ 0.50 per case sold
Rush Orders $500.00 Rush Order
Required:
- Compute the Sales and Profitability from each of Binghams customers in the above category
- Prepare a comprehensive report on the above. Identify the customers who represent current, or potential problems
Make recommendations on how Bingham may proceed with Customers A011, B123, G020, assuming they are all relatively new customers.
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