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Pure Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $13 per case and sells to retail
Pure Paper Delivery has decided to analyze the profitability of five new customers. It buys recycled paper at $13 per case and sells to retail customers at a list price of $15.30 per case. Data pertaining to the five customers are: -- Data table Data table Customer Activity Cost Driver Rate 1 2 3 4 5 Order taking 2,000 8,800 62,300 32,900 2,400 Customer visits hinus sign for operating losses.) $15.30 $15.30 $15.30 $15.30 $15.30 $150 per purchase order $50 per customer visit $3 per delivery mile traveled $0.40 per case sold Deliveries $15.30 $15.01 $13.60 $14.73 $13.79 18 31 35 29 32 Cases sold List selling price Actual selling price Number of purchase orders Number of customer visits Number of deliveries Miles traveled per delivery Number of expedited deliveries Product handling Expedited deliveries $310 per expedited delivery 2 4 6 2 3 20 41 65 38 32 16 7 9 8 43 0 0 o 0 3 Print Done Requirement 1. Compute the customer-level operating income of each of the five retail customers now being examined (1, 2, 3, 4, and 5) Begin by calculating each customer's gross margin. Then calculate the operating income for each customer. (Complete all input fields. En 1 2 3 4 5 Gross margin LU Total customer-level operating costs Customer-level operating income (loss)
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