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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:

  1. Compute the Sales and Profitability from each of Binghams customers in the above category
  2. 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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