Question 11 Mot complete eBook Print Marked out of 1.00P Gestion Customer Profitability Analysis Roland, Inc. provides residential painting services for three home building companies, Alpha, Beta, and Gamma, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by Roland for return touchups and refinishes after the homeowner occupies the home. Roland painteach house ona square footage contact price which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, Roland generates about one third of its total revenues and gross profits from each of the three bullders. Roland has observed that the builders, however, require substantially different levels of support following the completion of the following data have been word Support Activity Driver Costs per Driver Unit Majoreshes Hourson Touch Number of Con Number Builder Major Refinishes Touchs Communication bulder wy b u. Der er ang into account the support activity required Assuming that each of the three customers produces Alpha ADA Customer Profitability Analysis Roland, Inc. provides residential painting services for three home building companies, Alpha, Beta, and Gamma, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by Roland for return touchups and refinishes after the homeowner occupies the home. Roland paints each house on a square footage contract price, which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, Roland generates about one-third of its total revenues and gross profits from each of the three builders. Roland has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered: Support Activity Driver Costs per Driver Unit Major refinishes H ours on job Touchups Number of visits $110 Communication Number of calls $80 $40 Builder Major Refinishes Touchups Communication Alpha Beta Gamma 115 Assuming that each of the three customers produces gross profits of $100,000, calculate the profitability from each builder after taking into account the support activity required for each builder. Alpha $ 52,800 Beta $ 0 Gamma $ 0 Type here to search