Required $1$

Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers.

Jerry, Incorporated Kate Company

Number of orders $460$

Units per order $1,000160$

Sales returns:

Number of returns $23$

Total units returned $60160$

Number of sales calls $125$

Colleen sells its products at $$290$ per unit. The firm$$s gross margin ratio is $25\%.$ Both Jerry and Kate pay their accounts promptly and no accounts receivable is over $30$ days. After using business analytics software to carefully analyze the operating data for the past $30$ months, the firm has determined the following activity costs:

Activity Cost Driver and Rate

Sales calls $$900$ per visit

Order processing $430$ per order

Deliveries $300$ per order

Sales returns $240$ per return and $$4$ per unit returned

Sales salary $110,000$ per month

Required:

$1.$ Using customers as the cost objects, classify the activity costs into cost categories $($unit$-$level, batch$-$level, etc.$)$ and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company.

$2.$ Compare the profitability of these two customers.Required $2$

Compare the profitability of these two customers. $($Loss amounts should be indicated by a minus sign. Round operating margin $($loss$)$ to $2$ decimal places $($i$.$e$.0\mathrm{.}2134$ should be entered as $21\mathrm{.}34\%).)$

$\backslash$table$[[,\backslash$table$[[$Jerry$,],[$Incorporated$]],$Kate Company$],[,,,,],[,,,,],[$Net sales,$0,,0,],[,,,,],[,0,,0,],[,,,,],[$Operating income $($loss$),,,,],[$Operating margin $($loss$),,\%,,\%]]$