Heimlich would like to increase its profits but is has capacity constraints. Heimlich wants to cull out the poorer performing customers to provide additional capacity so they can increase their sales to the better performing customers. Using data set attached below and Assume:
- $4.36 unit price
- $2.27 unit variable cost
- 48% corporate tax rate
- $36 cost to fill an order (regardless of how many units are in that order)
Which customer should Heimlich cull FIRST?
Group of answer choices
Haney Housewares of Hooterville
Warnemunde Resorts and Fishing Expeditions
Farris Masochism Counseling, Group Therapy, and Shock Treatment
Brackett Hardware
Cha-cha Dance Studios
Bacon Vegetarian Restaurants
Sowannee River Excursions
Parks Towing
Perello Tires
Thompson Water Pistols
Shoemaker Tailors
Vavra Vehicles
Haughey Potatoes
Mischke Manufacturing
Huff Straw House Construction
Johnson Controls
Clark Bars
Eisenbrandt Brands
Walls Construction Company
Pennington Writing Instruments
A D G H C Total # of Orders Placed by 28 82 22 92 19 20 20 66 51 61 14 23 35 Customer Name Bacon Vegetarian Restaurants Beane Accounting Berardi Motors Brackett Hardware Cha-cha Dance Studios Clark Bars Eisenbrandt Brands Farris Masochism Counseling, Group Therapy, and Shock Treatment Gabriel Orozco Art Galleries Habib Wahid Musical Instruments Haney Housewares of Hooterville Haughey Potatoes Houston Shipping Hudson Automotive Huff Straw House Construction Johnson Controls Mckee Notables and Notions Mischke Manufacturing Neuwirth Nylons Parks Towing Pennington Writing Instruments Perello Tires Pohlen TransGlobal Rader Beacons Rojo Blanco y Azul Rust Stainless Steel Products Shoemaker Tailors Sowannee River Excursions Swartz Eyeglasses Thompson Water Pistols Vavra Vehicles Walls Construction Company Warnemunde Resorts and Fishing Expeditions Wells Drilling Company 18 16 52 127 31 39 12 25 61 13 52 29 12 300 22 104 17 365 19 14 E F Total Estimate Internal Cost Quantity d ICC of for Customer Ordered in Custome Each Time 24,319 25.0% $43.00 106,121 40.0% $71.00 1,958 34.0% $68,00 105,060 31.0% $16.00 15,105 32.0% $66.00 25,240 21.0% $82,00 12,556 26.0% $75.00 100,666 36.0% $66.60 110,765 35.0% $145.00 90,364 28.0% $29.00 7.422 29.0% $55.00 24,938 24.0% $65.00 304,095 32.0% $36.00 28,968 22.0% $105.00 7,060 28.0% $83.00 13,971 27.0% $74.00 9,108 23.0% $49.00 447,100 40.0% $56.00 34,078 29.0% $57.00 72,272 34.0% $80.00 3,573 40.0% $53.00 25,542 26.0% $51.00 28,876 21.0% $82.00 9.215 32.0% $72.00 453 36.0% $87.00 24,144 24.0% $34.00 6,354 33.0% $67.00 449,500 42.0% $50.00 21,144 23.0% $85.00 364 35.0% $81.00 21,588 30.0% $92.00 717 36.0% $71.00 13,676 31.0% $71.00 8,873 32.0% $76.00 A D G H C Total # of Orders Placed by 28 82 22 92 19 20 20 66 51 61 14 23 35 Customer Name Bacon Vegetarian Restaurants Beane Accounting Berardi Motors Brackett Hardware Cha-cha Dance Studios Clark Bars Eisenbrandt Brands Farris Masochism Counseling, Group Therapy, and Shock Treatment Gabriel Orozco Art Galleries Habib Wahid Musical Instruments Haney Housewares of Hooterville Haughey Potatoes Houston Shipping Hudson Automotive Huff Straw House Construction Johnson Controls Mckee Notables and Notions Mischke Manufacturing Neuwirth Nylons Parks Towing Pennington Writing Instruments Perello Tires Pohlen TransGlobal Rader Beacons Rojo Blanco y Azul Rust Stainless Steel Products Shoemaker Tailors Sowannee River Excursions Swartz Eyeglasses Thompson Water Pistols Vavra Vehicles Walls Construction Company Warnemunde Resorts and Fishing Expeditions Wells Drilling Company 18 16 52 127 31 39 12 25 61 13 52 29 12 300 22 104 17 365 19 14 E F Total Estimate Internal Cost Quantity d ICC of for Customer Ordered in Custome Each Time 24,319 25.0% $43.00 106,121 40.0% $71.00 1,958 34.0% $68,00 105,060 31.0% $16.00 15,105 32.0% $66.00 25,240 21.0% $82,00 12,556 26.0% $75.00 100,666 36.0% $66.60 110,765 35.0% $145.00 90,364 28.0% $29.00 7.422 29.0% $55.00 24,938 24.0% $65.00 304,095 32.0% $36.00 28,968 22.0% $105.00 7,060 28.0% $83.00 13,971 27.0% $74.00 9,108 23.0% $49.00 447,100 40.0% $56.00 34,078 29.0% $57.00 72,272 34.0% $80.00 3,573 40.0% $53.00 25,542 26.0% $51.00 28,876 21.0% $82.00 9.215 32.0% $72.00 453 36.0% $87.00 24,144 24.0% $34.00 6,354 33.0% $67.00 449,500 42.0% $50.00 21,144 23.0% $85.00 364 35.0% $81.00 21,588 30.0% $92.00 717 36.0% $71.00 13,676 31.0% $71.00 8,873 32.0% $76.00
