PART B

Stoner Excursions offers several services to customers. Susan Stoner realizes that some customers use more services than others, 50 the company has conducted a customer profitability analysis that identified the following cost pools and activity drivers Cost Pool Annual Cost Online reservations $160,000 Phone reservations Annual Driver Activity 32,000 online reservations 93.000 phone reservations 130,000 mailings 1.209,000 Ticket mailings 520,000 Courier deliveries 108.000 12,000 deliveries $1.997.000 (a) Your answer is correct. Calculate the activity rate for each cost pool. Cost Pool Activity Rate Online reservations $ 5 per online reservation Phone reservations $ 13 per phone reservation Ticket mailings $ 4 per mailing Courier deliveries 9 per delivery (b) Two of Stoner's customers have the following activity levels Customer A Customer B Ticket purchases $178,500 $178,500 Ticket cost $129.375 $135,000 Online reservations 700 0 Phone reservations 0 800 Ticket mailings 700 150 Courier deliveries 0 450 Calculate the customer net profit and customer profit margin for each customer: (Round customer profit margin to 1 decimal place, eg. 15.2%) Customer net profit Customer profit margin Customer A $ % Customer B s %