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Question is on the third picture. Thank you. Wingo Widgets makes and sells widgets to individual and corporate customers. Widgets cost $1.72 to make and
Question is on the third picture. Thank you.
Wingo Widgets makes and sells widgets to individual and corporate customers. Widgets cost $1.72 to make and are sold for $3.21 each. Individual customers typically require little service beyond order processing. Because widgets don't differ much from one producer to the next, corporate customers demand additional services before they will commit to a purchase. Wingo's selling activities and cost pools are as follows: Cost Pool Annual Cost Annual Driver Activity Order processing $205,600 2,570 orders Telephone technical support 45,820 1,580 hours Product demonstrations 76,580 140 demonstrations Express deliveries 39,200 400 deliveries $367,200 The following table compares the activity levels for the average individual customer and the average corporate customer. Individual Corporate Widgets purchased 1,000 10,000 Orders R 12 Technical support hours Product demonstrations Express deliveries 1 13 Your answer is correct. Calculate the activity rate for each cost pool. Cost Pool Activity Rate Order processing 80 per order Telephone support 29 per hour AA AA Product demonstrations 547 per demonstration Express deliveries per delivery eTextbook and Media (b) Your Answer Correct Answer Your answer is correct. Calculate the customer net profit and customer profit margin for the average individual customer and the average corporate customer. Customer net profit Customer profit margin Individual Customer $ 316 9.84 Corporate Customer tA 3278 10.21 If Wingo wanted to drop one average corporate customer, how many average individual customers would need to be added to make up the lost net income? (Round answer to 2 decimal places, e.g. 15.25.) Average individual customers would need to make up the lost net incomeStep by Step Solution
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