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Part 1 Requirement 1 . Calculate the customer - level operating income for each customer. ( Complete all answer boxes. Enter a 0

Part 1
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.)
Customer
01
02
03
04
05
06
Revenue
$450
$5,300
$330
$2,500
$5,500
$750
Cost of product
270
3,180
198
1,500
3,300
450
Gross profit
Customer-level costs
Customer orders
Customer fittings
Rush order costs
Returns for repair
Customer-level operating income (loss)
Part 2
Rank the customers in order of most to least profitable and prepare a customer-profitability analysis in terms of operating income. (Use parentheses or a minus sign when entering negative numbers and losses. Enter percents rounded to two decimal places, X.XX%)
Customer Number
Customer-Level Operating Income
Customer Revenue
Customer-Level Operating Income Revenue (%)
Cumulative Customer-Level Operating Income
Cumulative Customer-Level Operating Income as a % of Total Customer-Level Operating Income (%)
First row customer number input
First row customer-level operating income number input
First row customer revenue number input
First row customer-level operating income revenue percentage number input
First row cumulative customer-level operating income number input
First row cumulative customer-level operating income as a % of total customer-level operating income percentage number input
Second row customer number input
Second row customer-level operating income number input
Second row customer revenue number input
Second row customer-level operating income revenue percentage number input
Second row cumulative customer-level operating income number input
Second row cumulative customer-level operating income as a % of total customer-level operating income percentage number input
Third row customer number input
Third row customer-level operating income number input
Third row customer revenue number input
Third row customer-level operating income revenue percentage number input
Third row cumulative customer-level operating income number input
Third row cumulative customer-level operating income as a % of total customer-level operating income percentage number input
Fourth row customer number input
Fourth row customer-level operating income number input
Fourth row customer revenue number input
Fourth row customer-level operating income revenue percentage number input
Fourth row cumulative customer-level operating income number input
Fourth row cumulative customer-level operating income as a % of total customer-level operating income percentage number input
Fifth row customer number input
Fifth row customer-level operating income number input
Fifth row customer revenue number input
Fifth row customer-level operating income revenue percentage number input
Fifth row cumulative customer-level operating income number input
Fifth row cumulative customer-level operating income as a % of total customer-level operating income percentage number input
Sixth row customer number input
Sixth row customer-level operating income number input
Sixth row customer revenue number input
Sixth row customer-level operating income revenue percentage number input
Sixth row cumulative customer-level operating income number input
Sixth row cumulative customer-level operating income as a % of total customer-level operating income percentage number input
Part 3
Requirement 2. Are any customers unprofitable? What is causing this? What should Jewel Joy do about these customers?
The unprofitable customer(s)
are Customers 03 and 01.
is Customer 03.
are none.
Unprofitable customers, if there are any, are those who have a
high operating income to revenue percentage.
low operating income to revenue percentage.
They tend to have
high activity levels and/or low revenues.
low activity levels and/or low revenues.
The customers with the lowest operating income amounts are usually those customers with a
large number of orders, rush orders, and return visits.
small number of orders, rush orders, and return visits.
Part 4
Jewel Joy could make these customers more profitable by: (If a box is not used in the table, leave the box empty; do not select an answer.)
Part 5
Whatever decision it takes, Jewel Joy must also consider the effect the decision might have on
the number of hours spent on customer order.
the number of rush orders.
total sales.
The unprofitable customer(s)Unprofitable customers, if there are any, are those who have aUnprofitable customers, if there are any, are those who have aThey tend to haveThey tend to haveThe customers with the lowest operating income amounts are usually those customers with aThe customers with the lowest operating income amounts are usually those customers with aWhatever decision it takes, Jewel Joy must also consider the effect the decision might have on
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Activities
Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $ 44 per hour spent with a customer.
Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $ 20 per hour.
Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $ 110 per rush order.
Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $ 25 per return visit.
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Customer Data
Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 60% of the selling price.
Customer number
01
02
03
04
05
06
Sales revenue
$450
$5,300
$330
$2,500
$5,500
$750
Cost of item(s)
$270
$3,180
$198
$1,500
$3,300
$450
Hours spent on customer order
2
7
2
7
25
3
Hours on fittings
1
6
0
3
5
0
Number of rush orders
0
0
1
2
2
0
Number of return visits
0
0
0
0
3
1
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Required
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.
Are any customers unprofitable? What is causing this? What should Jewel Joy do about these customers?
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