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Q6c - May I please get help with/guidance for the following homework problem? Thank you for your help. a)CurDrezCo Enterprises analyzes profitability of each customer

Q6c- May I please get help with/guidance for the following homework problem? Thank you for your help.

a)CurDrezCo Enterprises analyzes profitability of each customer and order.It has determined the following are the average costs for each customer activity.

  • Order processing (per order) $8.00
  • Additional handling costs if order marked rush (per order) 10.00
  • Customer service calls (per call) 14.00
  • Relationship management costs (per customer per year) 3,500

In addition to these costs, product costs amount to 85 percent of sales.

In 2020, the company had the following experience with Hanson Electronics, one of its customers:

  • Sales $54,000
  • Number of orders placed 250
  • Percent of orders marked "rush" 70%
  • Calls to customer service 160 (what a pest!)

Calculate the profitability of the Hanson Electronics account. Show all calculations.

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