We Trust Me Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:

Activity

Cost Driver

Rate

Sales

# of visits

$450

Order processing

# of orders

$125

Product handling

# of units

$12

Special shipping

# of shipments

$500

The company has the following information regarding Trudeauz Ltd. and ScheeryInc.:

Activity

Trudeauz Ltd.

Scheery Inc.

# of visits

9

6

# of orders

18

24

Product handling

650

380

Special shipping

15

30

Sales for Trudeauz and Scheeryare $280,000 and $148,000 respectively. The cost of goods sold on these sales are the same at 52%.

Required:

Using Customer ABC Analysis, analyze the relative profitability of Trudeauz and

Scheery. This requires full analysis including summary