Tennair Corporation manufactures cooling system components. The company has gathered the following information about two of its customers: Evans Equipment and Rogers Refrigeration.

Tennair Corporation manufactures cooling system components. The company has gathered the following information about two of its customers: Evans Equipment and Rogers Refrigeration. Sales revenue Cost of goods sold General selling costs General administrative costs Evans Equipment $ 235,000 105,000 40,000 25,000 Rogers Refrigeration $174,000 58,000 31,500 19,050 Cost-driver data used by the firm and traceable to Evans and Rogers are: Pool Rate $1,000 Customer Activity Sales activity Order taking Special handling Special shipping Cost Driver Sales visits Sales orders Units handled Shipments 290 50 400 Customer Activity Sales activity Order taking Special handling Special shipping Evans Equipment 8 visits 37 orders 400 units 39 shipments Rogers Refrigeration 5 visits 42 orders 350 units 50 shipments Required: a. Perform a customer profitability analysis for Tennair. Compute the gross margin and operating income on transactions related to Evans Equipment and Rogers Refrigeration. Evans Equipment Rogers Refrigeration Gross margin Operating income b. Compute gross margin as a percentage of sales revenue. Then compute (1) general selling and administrative costs as a percentage of gross margin and (2) total customer-related costs (i.e., costs that arise from sales visits, order taking, and special handling and shipping) as a percentage of gross margin. (Round your answers to 2 decimal places.) Evans % Gross margin General selling and administrative costs Customer-related costs Rogers % % % % %