Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jewel Beauty is a new company that manufactures custom jewelry Jewel Beauty currently has six customers referenced by custormer number. 01,02 . 03,04,05, and 06

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Jewel Beauty is a new company that manufactures custom jewelry Jewel Beauty currently has six customers referenced by custormer number. 01,02 . 03,04,05, and 06 . Besides the costs of making the jewelry, the company has the followirg activities: (Click the icon to view the activities.) (Click the icon to view the customer data) Read the requirements Requirement 1. Caiculate 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) Rank the customers in order of most to least profitable and prepare a customer-profitability analysis in ferms of operating income. (Use parentheses or a minus sign when entering negative numbers and losses. Enter percents rounded to two decirnal p laces, X% ) Requirement 2. Are any customers unprofitable? What is causing this? What shoukf Jewel Beauty do about these customers? unprofitable customer(5) Unprofitable customers, if there are any, or those who have a operating income to revenue percentage, tend to have activity levels andior low revenues. Those customers with a number of orders, nush orders, and return visits are usually the customers with the lowest operating income amounts Jewol Beauty could make these customers more proftable by (f a box is not used in the table, leave the box emply; do not select an answer.) Whalever decision it takes, Jewel Beauty musl also consider the effect the decision might have on Data table Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry 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 Beauty do about these customers? More info 1. Customer orders The salespeople, designers, and jeweiry makers spend time with the customer. The cost-driver rate is $48 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 $28 per hour. 3. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $115 per rush order 4. Number of customer return visits. Customers may retum jewelry up to 30 days after the pickup of the jeweiry to have something refitted or repaired at no charge. The cost-driver rate is $25 per return visit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Accounting for Governmental and Not-for-Profit Organizations

Authors: Paul A. Copley

10th Edition

007352705X, 978-0073527055

More Books

Students also viewed these Accounting questions

Question

What is the reaction quotient? How is it useful?

Answered: 1 week ago