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Jersey corporation has analyzed their customer and order handling data for the past year & has determined the following costs Ordering processing cost per order

Jersey corporation has analyzed their customer and order handling data for the past year & has determined the following costs

Ordering processing cost per order $7

additional costs if order must be expedited (rushed) $10.00

Customer technical support calls (per call) $12

relationship management costs per customer/per year) $1200

in addition to these costs, product costs amt to 75% of sales

In prior year, Jersey had the following experience with one of its customers. The Happy company

Sales 15,000

Number of orders 160

Percent of orders marked rushed 70%

Call to technical support 80

Calculate the profitability of the Happy company account

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