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Jewel Joy is a new company that manufactures custom jewelry. Jewel Joy currently has six customers referenced by customer number: 0 1 , 0 2
Jewel Joy is a new company that manufactures custom jewelry. Jewel Joy currently has six customers referenced by customer number:
and Besides the costs of making the jewelry, the company has the following activities:
Click the icon to view the activities.
Click the icon to view the customer data.
Read the requirements.
Requirement Calculate the customerlevel operating income for each customer. Complete all answer boxes. Enter a for any zero
balances. Use parentheses or a minus sign when entering operating losses.
Customer
More info
Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The costdriver rate is $ per hour
spent with a customer.
Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits
properly. Costdriver rate is $ per hour.
Rush orders. Some customers want their jewelry quickly. The costdriver rate is $ per rush order.
Number of customer return visits. Customers may return jewelry up to days after the pickup of the jewelry to have something refitted or
repaired at no charge. The costdriver rate is $ per return visit.
Data table
tabletableInformation about the six customers follows. Some customers purchased multiple items. The cost of the jewelryis of the selling price.Customer number,Sales revenue,$$$$$$Cost of items$$$$$$Hours spent on customer order,,Hours on fittings,,Number of rush orders,,Number of return visits,,
Enter a
Rush order costs
Requirements
Calculate the customerlevel operating income for each customer. Rank the
customers in order of most to least profitable and prepare
a customerprofitability analysis.
Are any customers unprofitable? What is causing this? What should
Jewel Joy do about these customers?
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