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Suppose that Stillwater_5 has two classes of distributors: JIT distributors and non JIT distributors. The JIT distributor places small, frequent orders, and the non JTT
Suppose that Stillwater_5 has two classes of distributors: JIT distributors and non JIT distributors. The JIT distributor places small, frequent orders, and the non JTT distributor tends to place larger, less frequent orders. Both types of' distributors are buying the same product. Stillwater_4 provides the following information about customer-related activities and costs for most recent quarter: JIT Non JIT Distributors Distributors Sales orders +2414 100 20 Sales calls & CH 21+ 200 100 Service calls fu|~ 714 180 20 Average order size 428 07 5 20 Unit COGM E-91 XI| X 8171 W40 W40 W60 W60 Customer costs: 7174 9171 Processing sales orders +2 2| W3,600 Selling goods 7174 8 CH 3,000 Servicing goods AtH/_ & CH 2,400 Total W9,000 Required: 1. Prepare A Customer Profitability Analysis for Stillwater_5. 2. As a director of the sales division, prepare your comments (?= 0| 2 2 go|2 3= O| LHOII ZHEro| ~ DoA2 3 lines max, Korean or English)Stillwater 174 493 51/ Customer Profitability Report JIT Cust Non JIT Cust Er 91 :) OH 71 Unit Selling Price fed DOHQ(s) per order EL 9/ XI| X 917) Unit COGM Feni+ # of order OH = Q(s) [1] # OH 712 71 74 217) Customer Cost / Sales Quantity (1) 7174 9 7} HH $71 2/ UH4 8 Alloc Rate Cus Rel Costs (CRC) CRC Budget Alloc Base Alloc Base Bagt Rate 174 271 TY lo | AUX Company Wide (2) UH$7/ 28 5 Alloc Base incurred (4) 71 74 0/ { Customer Margin JIT Cust Non JIT Cust JIT Cust Non JIT Cust 1 74 247/ CRC X X 27 COGM at All Sum (3) 3 74 9 7) UH 4 04 CRC applied [ OH Q(s) JIT Cust Non JIT Cust | AT All Company Wide #915 XX9 124 917) unit CRC+COGM Er915 7 240)
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