Triumph Corporation has analyzed their customer and order handling data for the past year and has determined the following costs:

Order processing cost per $8.00

Additional costs if under

must be expedited (rushed) $9.00

Customer technical support $13.00

Relationship management

costs (Per customer per year) $1,800.00

In addition to these costs, product costs amount to 80% of sales.

In the prior year, triumph had the following experience with one of its customers, Julius Company:

Sales $20,000

Number of orders 170

Percent of orders marked rush 80%

Calls to technical support 90

REQUIRED:

Calculate the profitability of the Julius Company account.

Sales Amount

Less:

Title? Formula?

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Title? Formula?

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Profitability of Julius

Company account Formula?