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Question 3 14 Zens Ltd manufacture toy monsters that devour Lego towns. The management accountantosan Reroot) has just completed a customer profitability analysis at the
Question 3 14 Zens Ltd manufacture toy monsters that devour Lego towns. The management accountantosan Reroot) has just completed a customer profitability analysis at the request to the marketing manager Jamie Chow). The following information forms the basis of the customer profitability analysis Gustomer level activities Cost driver rate Sales activity $1.200 per sales visit Order taking $180 per order Rush-order handling $60 per unit handled Exchange and Repair $30 per unit exchanged Rush transport $400 per shipment Rush transport esc $400 per shipment Information about Zena's two major customers are: Customer level activities Toys R4U Dinosaur City Sales activity 7 sales visits 5 sales visits Order taking 12 purchase orders 17 purchase orders Rush-order handling 700 units handied 400 units handled Exchange and Repair 70 units exchanged 14 units exchanged Rush transport 16 shipments 12 shipments The following data also relates to the same two major customers Income statement items Toys R4U Dinosaur City Rush transport 16 shipments 12 shipments The following data also relates to the same two major customers: Income statement items Toys R4U Dinosaur City Sales revenue at list price $190,000 $143.200 Price discount 15,000 Cost of goods sold 80,000 62.000 Selling & administrative costs 43,000 34.000 Required Calculate the customer-level operating profit for these two major customers
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