Ivanhoe Solutions, Inc. is an employment services form that places both temporary and permanent workers with a variety of clients. Temporary placements account for 70% of Ivanhoe Solutions revenue permanent placements provide the remaining 30%. President Gia Johnson recently read an article that discussed the need to consider selling and administrative costs in determining customer profitability-practice that Ivanhoe Solutions does not follow. Johnson is concerned that the company may be making poor choices in the selection of customers. in the temporary market, Ivanhoe Solutions advertises and searches for workers hires ther, and pays them for the hours they work. The company then bills customers for an amount that is higher than the workers' pay plus employment taxes. Because the temporary market is very competitive, Ivanhoe Solutions has had to reduce the rates charged to customers to keep their business After reviewing the year's operations, Johnson has determined that the company's customer service activities for the temporary business could be divided into three cost pools: filling work orders, hiring temporary employees, and processing payrollbilling customers. The following table shows the three cost pools and their annual capacity. Cost Pool Filling work orders Hiring temporary employees Processing payrollbilling customers Total Cost $ 167,475 $ 72.900 $ 42.500 Annual Capacity 3,300 orders 2.700 applicants 170,000 hours worked Ivanhoe Solutions largest four customers account for about 52% of total sales, so Johnson has decided to analyze those customers accounts hirst to determine how much they are contributing to the bottom line. The gross margin the companies generate and the activities they use are as follows: Chemical Company $466.733 Trailer Manufactures $145,764 Newspaper Publisher $122.604 Food Processor $167.327 Sales Cost of sales Wages Taxes and fees Total cost of sales Gross margin Temps ordered Applicants Hours worked 342620 65 366 406,956 $59.747 90 70 47.370 110473 24 350 134 B2a $10.941 56 48 15.115 92.205 18.621 110.826 511778 936 794 13.000 120451 23411 143.862 $23465 332 284 22.765 Your answer is correct Calculate the grous margin percentage for each customer. Round answers to I decimal place.es 15.2 Gross Margin Chemical Company Trailer Muxture Newscaper Pub Food Processor $466,733 $145,764 $122.00 Seles Cost of sales Wages Tapes and fees Total cost of sales Gross margin Temps ordered Applicants Hours worked 341.620 65,366 406,986 $59,747 90 70 47,370 110,473 24,350 134823 $10.941 56 48 15,115 92,205 18,621 110,826 $11,778 936 794 13,000 120 451 22.411 143,862 $23,465 332 284 22.765 Your answer is correct. Calculate the gross margin percentage for each customer. (Round answers to 1 decimal place, as 15.25) Gross Margin X 128 Chemical Company Trailer Manufacturer Newspaper Publisher 75 * % Food Processor % Attempts unlimited Determine the activity rates for each of the three cost poolt. (Round answers to 2 decimal places, e 15.253 Cost Pool Activity Rate Filling work orders S per order Hiring temporary employees 5 per applicant Processing payroll/billing customers 5 per hour Textbook and Media Sove for Later Attempts unlimited Submit A c) The arts of this costomust be completed in order that will be bio whes you complete the part above
