Triumph Corporation has analyzed its customer and order handling data for the past year and has determined the following costs and other information:
	Order processing cost per order			$ 9.00
	Additional costs if order must be expedited (rushed)		$ 11.00
	Customer technical support calls (per call)		$ 13.00
	Relationship management costs (per customer per year)		$ 1,800
	Portion of sales that are product costs			80%
In the prior year, Triumph had the following experience with one of its customers, Julius Company:
		Sales				$ 22,000
		Number of orders			170
		Percent of orders marked rush		80%
		Calls to technical support			90
Required
Calculate the profitability of the Julius Company account.
		Costs:
		Profitability of Julius Company
What-if?
Consider the following after you have completed the requirements of E8-16.
Triumph Corporation has determined that order processing costs are due to customers who typically fail to plan for what will be needed for the next week's work. Triumph estimates it can reduce the number of orders for all of its customers by 30% if it offers a 5% discount incentive to customers that order only once a week. Management believes that Julius Company's current number of annual orders of 170 can be reduced to 52 orders per year with the discount incentive. Determine the profitability of Julius Company if the discount is implemented.
		Costs:
		Profitability of Julius Company