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Problem 16-24 (similar to) Question Help Ring Delights is a new company that manufactures custom jewelry Ring Delights currently has six customers referenced by customer
Problem 16-24 (similar to) Question Help Ring Delights is a new company that manufactures custom jewelry Ring Delights currently has six customers referenced by customer number 01, 02, 02 04.05, and 06 Besides the costs of making the jewelry, the company has the following activities: Click the icon to view the activities.) (Click the icon to view the customer data) Read the requirements Requirement 1. Calculate the customer-level operating income for each customer (Complete all answer boxes. Enter a "U" for any zero balances Use parentheses or a minus sign when entering operating losses) Customer 01 02 03 04 05 06 Revenue 5 600 $ 3,500 $ 330 $ 2,800 $ 5,500 $ 850 Cost of product 360 2.100 198 1,680 3,300 510 Gross profit Customer level costs Customer orders Customer atings Rush order costs Returns for repair Customer Heves operario Income (loss aplete all answer boxes. Enter a "0" for any zero balances Use parentheses or a minus sign when entering operating losses.) Data Table Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 60% of the selling price, Customer number 01 02 03 04 05 06 Sales revenue $ 600 $ 3.500 $ 330 $ 2.800 $ 5.500 5 850 Cost of item(s) $ 360 $ 2.100 $ 198 $ 1,680 5 3,300 $ 510 Hours spent on customer order 3 1 6 24 5 Hours on fittings 1 5 1 4 4 0 Number of rush orders 0 1 1 1 0 Number of return visits 2 1 3 1 NO UN Print Done NUOYULUM IESU View the customer data.) fi customer (Complete all answer boxes. Enter a "0" for any zero balances. Use parentheses or a minus sign when entering operating losses.) Customer 03 04 05 06 330 S 2,800 S 5,500 $ 950 More Info X 2 1. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $46 per hour spent with a customer 2 Customer fittings Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $29 per hour 3 Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $100 per rush order 4 Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $40 per return visit Print Done Clear All 05 06 $ 5,500 $ 3.300 850 510 0 Requirements x 1. Calculate the customer-level operating income for each customer. Rank the customers in order of most to least profitable and prepare a customer-profitability analysis. 2. Are any customers unprofitable? What is causing this? What should Ring Delights do about these customers? Print Done
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