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Please only answer if you are sure you have the correct answer. Also, please show your work/computations so I can learn how to do as
Please only answer if you are sure you have the correct answer. Also, please show your work/computations so I can learn how to do as well; thank you!
Power Corporation sells a line of power tools to home improvement chains, generating a cost of goods sold equal to 50% of net sales. The selected data that follow relate to the period just ended for the company's three largest customers: Weekend Project, Tool Mart, and Fix-It City. Power's management recently attended a seminar and learned that customers with excessive requests and demands can have a significant, negative impact on corporate profitability. Weekend Project Tool Mart Fix-It City $1,990,000 50 $4,880,000 177 $4,699,000 127 Gross sales volume: Dollars Number of Orders Type of order: Regular Rush Sales returns: Dollars Number of returns Total customer-related costs 39 11 136 41 111 16 $ 241,000 $ 101,000 4 $ 245,000 $ 398,500 21 $ 896,000 $ 445,000 Required: For each of the three chains, compute: (For Requirement 1, 3-4, round your answers to 2 decimal places. Round "Average order size" to the nearest whole number.) 1. Total customer-related costs as a percentage of gross margin. 2. The average order size (ignoring sales returns). 3. The ratio of regular orders to rush orders. 4. The number of sales returns as a percentage of the number of total orders. Weekend Project Tool Mart Fix-It City % % Customer-related costs Average order size Ratio of regular orders Number of sales returns 1% 1% 1%
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