Question
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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