Need help understanding how to do this.

Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers.

	Jerry, Incorporated	Kate Company
Number of orders	4	60
Units per order	3,000	220
Sales returns:
Number of returns	2	5
Total units returned	50	160
Number of sales calls	10	6

Colleen sells its products at $200 per unit. The firms gross margin ratio is 30%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs:

Activity	Cost Driver and Rate
Sales calls	$900	per visit
Order processing	390	per order
Deliveries	490	per order
Sales returns	270	per return and $3 per unit returned
Sales salary	95,000	per month

Required:

1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company.

2. Compare the profitability of these two customers.

Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company.

	Jerry, Incorporated	Kate Company
Customer unit level costs:
Sales returns
Customer batch level costs:
Order processing
Sales returns
Delivery
Customer sustaining costs:
Sales calls
Total	$0	$0

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. 0.2134 should be entered as 21.34%).)

	Jerry, Incorporated		Kate Company
Sales
Sales returns
Net sales	0		0
Cost of goods sold
Gross margin	0		0
Sales support costs
Operating income (loss)
Operating margin (loss)		%		%