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

Gross sales volume:

Dollars $ 1,960,000 $ 4,820,000 $ 5,000,800

Number of Orders 50 183 133

Type of order:

Regular 36 139 114

Rush 14 44 19

Sales returns:

Dollars $ 104,000 $ 394,000 $ 244,000

Number of returns 7 24 12

Total customer-related costs $ 249,000 $ 899,000 $ 448,000

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.