Uli Conference Solutions specializes in the design and installation of meeting and conference centers for large corporations. When bidding on jobs, the company estimates product cost and direct labor for installers and marks up the total cost by 35 percent. On a recent job for Cullumber Industries, the company set its price as follows: Product costs including podiums, seating, lighting, etc. $174,200 25,200 Installer salaries Total Markup at 35 percent Bid price 199,400 69,790 $269,190 The job turned out to be a big hassle. Cullumber requested 27 change orders, although the dollar value of the products it requested changed very little. The company also returned 33 items that had extremely minor flaws (scratches that were barely visible and would be expected in normal shipping). Cullumber also requested seven meetings with designers taking 43 hours before its plan was finalized. Normally, only two or three meetings are necessary. Betty Harris, controller for Uli, decided to conduct a customer profitability analysis to determine the profitability of Cullumber. She grouped support costs into three categories with the following drivers: