Question
Please help wit the question below. Wizard Corporation has analyzed their customer and order handling data for the past year and has determined the following
Please help wit the question below.
Wizard Corporation has analyzed their customer and order handling data for the past year and has determined the following costs:
Order processing cost per order $7
Additional costs if order must be expedited (rushed) $9.00
Customer technical support calls (per call) $12
Relationship management costs (per customer per year)$1200
In addition to these costs, product costs amount to75% of Sales.
In the prior year, Wizard had the following experience with one of its customers, Chester Company:
Sales$16,000
Number of orders160
Percent of orders marked rush 70%
Calls to technical support 80
Calculate the profitability of the Chester Company account.
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