Question
Hiroole Products has determined the following costs: Order processing (per order) $6 Additional handling costs if order marked rush (per order) $10 Customer service calls
Hiroole Products has determined the following costs:
Order processing (per order) $6
Additional handling costs if order marked rush (per order) $10
Customer service calls (per call) $12
Relationship management costs (per customer per year) $3,600
In addition to these costs, product costs amount to 88 percent of sales. In the prior year, Hiroole had the following experience with one of its customers, Johnson Brands:
Sales $56,800
Number of orders 250
Percent of orders marked rush 70%
Calls to customer service 168
Calculate the profitability of the Johnson Brands account.(Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Profit / (Loss) of the Johnson Brands account $___________________(FILL IN BLANK)
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