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Need help please make sure to give a full answer, please Colleen Company has gathered the following data pertaining to activities it performed for two
Need help please make sure to give a full answer, please
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Kate Co. 50 170 Jerry Inc. Number of orders Units per order Sales returns: 2,000 Number of returns Total units returned Number of sales calls 50 150 Colleen sells its products at $220 per unit. The firm's gross margin ratio is 20%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business intelligence software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Sales calls Order processing Deliveries Sales returns Sales salary Cost Driver and Rate 5 800 per visit 450 per order 230 per order 250 per return and $3 per unit returned 97,000 per month Required: 1. Classify activity costs into cost categories (unit, batch, etc.) and compute the total cost for Colleen Company to service Jerry Inc. and Kate Co. Jerry Inc. Kate Co Customer unit level costs Delivery Order processing Sales calls Sales return Total 2. Compare the profitability of these two customers. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. .2134 should be entered as 21.34%).) Jerry Inc. Kate Co. Cost of goods sold Operating inco Sales Sales returnStep by Step Solution
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