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Necklace Delights is a new company that manufactures custom jewelry. Necklace Delights currently has six customers referenced by customer number: 01, 02, 03, 04,

 

Necklace Delights is a new company that manufactures custom jewelry. Necklace Delights currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: i (Click the icon to view the activities.) (Click the icon to view the customer data.) Read the requirements. Requirement 1. Calculate 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.) Revenue Cost of product Gross profit Customer-level costs Customer orders Customer fittings Rush order costs Returns for repair Customer-level operating income (loss) $ 01 600 $ 420 i Requirements 02 4,000 $ 2,800 03 Customer 260 $ 182 Print 04 2,400 $ 1,680 Done 05 5,100 $ 3,570 2. Are any customers unprofitable? What is causing this? What should Necklace Delights do about these customers? 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. 06 600 420 - X i Data Table Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 70% of the selling price. Customer number Sales revenue Cost of item(s) Hours spent on customer order Hours on fittings Number of rush orders Number of return visits $ $ 01 600 $ 420 $ 3 2 0 0 Print 02 4.000 $ 2,800 $ 7 4 1 0 Done 03 260 $ 182 $ 2 0 1 0 04 2,400 $ 1,680 $ 8 2 2 1 05 5,100 $ 3,570 $ 24 2 0 3 - 06 600 420 3 0 0 1 X

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