Problem 8-12 Marx Conference Solutions specializes in the design and installation of meeting and conference centers for large corporations. When bidding on jobs, the company estimates product cost and direct labor for installers and marks up the total cost by 30 percent. On a recent job for Orvieto Industries, the company set its price as follows: Product costs including podiums, seating, lighting, etc. Installer salaries Total Markup at 30 percent Bid price $174,400 29,100 203,500 61,050 $264,550 The job turned out to be a big hassle. Orvieto requested 23 change orders, although the dollar value of the products it requested changed very little. The company also returned 33 items that had extremely minor flaws (scratches that were barely visible and would be expected in normal shipping), Orvieto also requested seven meetings with designers taking 43 hours before its plan was finalized. Normally, only two or three meetings are necessary. Alison Jackson, controller for Marx, decided to conduct a customer profitability analysis to determine the profitability of Orvieto. She grouped support costs into three categories with the following drivers Driver Change orders Number of returns Design meeting hours Annual Value of Driver 765 change orders 1,080 product returns 1,231 meeting hours Annual Cost 5207,315 73,440 66,474 Marx Conference Solutions has decided to adopt an activity-based pricing scheme. On future jobs, the company will charge a 30 percent markup on the sum of product costs plus installer salaries. In addition, the company will charge 317 per change order, $97 per product return for products that are in excellent condition, and $90 per meeting hour with a Marx conference room designer. What would the profit be on the order from Orvieto? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Profit / (Loss)