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please provide the. information for the requirement it is 11 part question Thank you CH5 Q5 Veritek Wholesalers operates at capacity and sells furniture items
please provide the. information for the requirement it is 11 part question
Thank you
CH5 Q5
Veritek Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr. Veritek commented, "We apply ABC to determine product-line profitability. The same ideas apply to customer profitability, and we should find out our customer profitability as well." Veritek Wholesalers sends catalogs to corporate purchasing departments on a monthly basis. The customers are entitled to return unsold merchandise within a 6-month period from the purchase date and receive a full purchase price refund. The following data were collected from last year's operations and Veritek has calculated the following activity rates: (Click the icon to view the data.) E: (Click the icon to view the activity rates.) Customers pay the transportation costs. The cost of goods sold averages 80% of net sales. Requirement Determine the contribution to profit from each customer last year. Comment on your solution. i Data Table - X Chain 1 2 3 $ 75,000 $ 45,000 $ 95,000 $ 85,000 101 28 68 35 Gross sales Sales returns: Number of items Sales returns: Amount Number of orders: Regular Number of orders: Rush $ 15,000 $ 6,500 $ 6,650 $ 8,000 65 165 57 90 18 56 9 40 Print Done i Data Table X Activity Regular order processing Rush order processing Returned items processing Catalogs and customer support Cost-Driver Rate $32 per regular order $160 per rush order $20 per item $1,000 per customer Print Done Begin by completing the statement through gross margin for each chain. Then calculate the customer related costs and the contribution margin (loss) for each chain. (Round your answers to the nearest whole number. Use parentheses or a minus sign when entering a contribution loss.) Chain 1 Gross sales Sales returns Net sales Cost of goods sold Gross marginStep by Step Solution
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