Kamron's Supply Inc. provides cleaning supplies to the automobile detailing industry. The most popular product is an all-in-one detailing package with several types of cleaning agents, wax, towels, and supplies. Kamron's purchases the all-in-one boxes wholesale by the crate. The cost of each crate (50 all-in-one boxes) is $1,950. Information: Raven used cars Bear's auto. Wildcat motors. Greyhound. Colt Auto detail kits. 172. 267. 712. 417. 257 List sell price. 64. 64. 64. 64. 64 Actual sell price. 54. 53.20. 49.50. 54. 53.50 # of shipments. 3. 4. 26. 3. 3 Sales calls. 3. 5. 36. 4. 12 # of deliveries. 3. 7. 22. 1. 5 Miles per delivery. 14. 4. 50. 6. 12 Customer Appreciation day. 1. 2. 12. 0. 0 Cost drivers for each activity: Cost driver. Cost driver rate Deliveries $3 per delivery mile traveled Product handling. $0.90 per box sold Packaging. $14 per shipment Sales calls. $140 per sales call Customer appreciation day. $250 per day Questions/problems: 1. Determine the operating income of each of the five retail customers. Explain the results. 2. How does this data inform decisions on customer targeting, customer retention, and sales? As a general manager of Kamron's, how would you evaluate the delivery service and sales force? 3. what approach would you take going forward with Wildcat motors and Greyhound classic cars? 4. Using the answers calculated below, explain the customer profitability data (what is it telling us?) be specific. 5. What value is there to management in reporting both the list selling price and the actual selling price for each customer? 6. How does this insight relate to the performance evaluation of the sales department? 7. What issues from the data should managers consider in deciding whether to make adjustments or drop any of these customers? Could you please show calculations or formulas used so I understand this, please. Worksheet problem (customer): Ravens. Bears. Wildcat motors. Greyhound. Colt Revenues at list price Discount Revenues (at actual price) Cost of good sold Gross margin Customer level operating costs: Packaging Sales calls Deliveries Product handling Customer appreciation days TOTAL Customer-level operating income