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is a new company that manufactures custom jewelry. NecklaceDelights currently has six customers referenced by customer?number: 01,?02, 03,?04, 05, and 06. Besides the costs of

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is a new company that manufactures custom jewelry. NecklaceDelights 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:

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Requirement 1. Calculate the customer-level operating income for each customer. (Complete all answer boxes. Enter a "0" f: Customer 01 02 03 04 05 06 Revenue $ 55C $ 4:00C $ 34C 58 2:10C $ 4900 $ 35C 33C 2 40C 204 1 26C 2 940 51C Cost of product ' = ' Gross profit Customerlevel costs Customer orders | | Customer ttings l | Rush order costs Returns for repair Customerlevel operating income (loss) i More Info X 1. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $50 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 $26 per hour. 3. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $90 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 $25 per return visit.0 Data Table - Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelryr is 60% of the selling price. Customer number 01 02 03 04 05 06 Sales revenue $ 550 $ 4,000 $ 340 $ 2,100 $ 4,900 $ 850 Cost of item(s) $ 330 $ 2,400 $ 204 $ 1,250 $ 2,940 $ 510 Hours spent on customer order 5 8 1 6 24 3 Hours on ttings 2 4 0 2 2 1 Number of rush orders 0 2 1 0 2 0 Number of return visits 0 1 1 0 0 1 Print Done H Requirements X 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 Necklace Delights do about these customers? Print Done

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