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May I please have help with the following homework problem? Please provide guidance/direction on how to calculate the profitability of Acme. Sample Case : Acme

May I please have help with the following homework problem?

Please provide guidance/direction on how to calculate the profitability of Acme.

Sample Case:

Acme analyzes profitability of each customer and order.It has determined the following are the average costs for each customer activity.

Order processing (per order)$8.00

Additional handling costs if order marked rush (per order)10.00

Customer service calls (per call)14.00

Relationship management costs (per customer per year)3,500

In addition to these costs, product costs amount to 85 percent of sales.

In 2020, the company had the following experience with Hanson Electronics, one of its customers:

Sales$54,000

Number of orders placed250

Percent of orders marked "rush"70%

Calls to customer service160 (what a pest!)

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