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i More Info 1. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $30 per hour spent
i More Info 1. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $30 per hour spent with a customer. 2. Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $24 per hour. 3. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $85 per rush order. 4. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $28 per return visit. Print Done P15-30 (similar to) Jewel Joy is a new company that manufactures custom jewelry. Jewel Joy currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: (Click the icon to view the activities.) (Click the icon to view the customer data.) Read the requirements Requirement 1. Calculate the customer-level operating income for each customer. (Complete all answer boxes. Enter a "0" for any zero balances. Use parentheses or a minus sign when entering operating losses.) Customer Data Table X 01 02 03 04 05 06 Revenue $ 800 $ 5,300 $ 300 $ 3,000 $ 5,300 $ 620 560 3.710 210 2.100 3,710 434 Cost of product Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 70% of the selling price. Gross profit Customer number 01 02 03 04 05 06 Customer-level costs Sales revenue $ 800 $ 5.300 $ 300 $ 3,000 $ 5,300 $ 620 Customer orders Cost of item(s) $ 560 $ 3,710 $ 210 $ 2,100 $ 3,710 $ 434 Customer fittings 5 Hours spent on customer order 7 1 8 20 5 Rush order costs Hours on fittings 1 4 0 3 6 2 Returns for repair Number of rush orders 0 0 1 1 4 0 Customer-level operating income (loss) Number of return visits 0 2 0 0 0 1 Print Done Requirements 1. Calculate the customer-level operating income for each customer. Rank the customers in order of most to least profitable and prepare a customer-profitability analysis. 2. Are any customers unprofitable? What is causing this? What should Jewel Joy do about these customers? Print Done
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