Wizard Corporation has analyzed their customer and order handling data for the past year and has determined the following costs:<\/p>
Order processing cost per order<\/p>
$7<\/p>
Additional costs if order must be expedited (rushed)<\/p>
$8.50<\/p>
Customer technical support calls (per call)<\/p>
$12<\/p>
Relationship management costs (per customer per year)<\/p>
$1200<\/p>
In addition to these costs, product costs amount to75% of Sales.<\/p>
<\/p>
In the prior year, Wizard had the following experience with one of its customers, Chester Company:<\/p>
Sales $16,000<\/p>
Number of orders160<\/p>
Percent of orders marked rush 70%<\/p>
Calls to technical support 80<\/p>
Required:<\/em><\/strong><\/p> Calculate the profitability of the Chester Company account.<\/p>",
"transcribed_text": "",
"related_book": {
"title": "Entrepreneurship",
"isbn": "1119563097, 9781119563099",
"edition": "5th Edition",
"authors": "Andrew Zacharakis, William D Bygrave",
"cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2021\/11\/6192073f58970_0626192073ecba87.jpg",
"uri": "\/textbooks\/entrepreneurship-5th-edition-9781119563099",
"see_more_uri": ""
},
"free_related_book": {
"isbn": "0415201039",
"uri": "\/textbooks\/communicating-successfully-in-groups-a-practical-guide-for-the-workplace-1st-edition-978-0415201032-365929",
"name": "Communicating Successfully In Groups A Practical Guide For The Workplace",
"edition": "1st Edition"
},
"question_posted": "2024-06-06 19:08:27",
"see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05",
"step_by_step_answer": "The Answer is in the image, click to view ...",
"students_also_viewed": [
{
"url": "\/cassy-company-has-the-following-information-for-october-sales",
"description": "Cassy Company has the following information for October: Sales .................... $ 760,000 Variable cost of goods sold ........... 395,200 Fixed manufacturing costs ............ 68,400 Variable...",
"stars": 3
},
{
"url": "\/study-help\/survey-of-accounting\/describe-how-the-perpetual-inventory-system-works-what-are-some-1761993",
"description": "Describe how the perpetual inventory system works. What are some advantages of using the perpetual inventory system? Is it necessary to take a physical inventory when using the perpetual inventory...",
"stars": 3
},
{
"url": "\/study-help\/psychology\/were-the-various-different-cultural-groups-involved-in-planning-implementing-1979918",
"description": "Were the various different cultural groups involved in planning, implementing, and reviewing the data collection instruments? In the results?",
"stars": 3
},
{
"url": "\/refer-to-the-bond-details-in-problem-144b-required-1",
"description": "Refer to the bond details in Problem 14-4B. Required 1. Compute the total bond interest expense over the bonds life. 2. Prepare an effective interest amortization table like the one in Exhibit 14B.2...",
"stars": 3
},
{
"url": "\/study-help\/questions\/a-10year-bond-has-an-annual-coupon-of-9-the-9736486",
"description": "A 10-year bond has an annual coupon of 9%. The bond has a yield to maturity of 7%. If the required rate of return remains unchanged, the bonds price one year from today will be (hint: bond prices...",
"stars": 3
},
{
"url": "\/study-help\/questions\/k-suppose-a-division-of-califomia-instruments-incorporated-that-sells-2001996",
"description": "k Suppose a division of Califomia Instruments Incorporated that sells computer microchips has these inventory records for January 2021: (Click the icon to view the inventory records.) The company's...",
"stars": 3
},
{
"url": "\/study-help\/questions\/in-particular-what-did-dr-balanoff-and-other-researchers-discover-1003456",
"description": "In particular What did Dr. Balanoff and other researchers discover about the size of the dinosaur cerebrum in non-bird dinosaurs closely related to birds?",
"stars": 3
},
{
"url": "\/study-help\/questions\/1-consider-the-output-of-a-paper-mill-the-product-1007022",
"description": "1. Consider the output of a paper mill: the product appears at the end of a web and is rolled onto a spool called a reel. Every reel is examined for the number of blemishes, which are imperfections....",
"stars": 3
},
{
"url": "\/study-help\/questions\/provide-the-stepbystep-calculations-for-this-question-rod-bd-is-1025417",
"description": "provide the step-by-step calculations for this question: Rod BD is made of steel ( E = 29 10 6 psi) and is used to brace the axially compressed member ABC . The maximum force that can be developed in...",
"stars": 3
},
{
"url": "\/study-help\/questions\/1-what-was-the-need-of-zurich-airport-privatization-1003161",
"description": "1. What was the need of Zurich airport privatization? + recommendation( words of 500 to 600)* references required+ p lagiarism applied*",
"stars": 3
},
{
"url": "\/study-help\/questions\/z-satellites-body-is-rotating-with-an-angular-velocity-1025768",
"description": "Z satellite's body is rotating with an angular velocity about z-axis the solar panels rotate with by angle about y-axis calculate the angular momentum of the satellite",
"stars": 3
},
{
"url": "\/study-help\/questions\/what-are-the-benefits-of-middle-class-conformity-in-the-7006887",
"description": "What are the benefits of middle class conformity in the 50s and early 60s? What are the problems with conformity?",
"stars": 3
},
{
"url": "\/study-help\/marketing-strategy-\/explain-the-unique-features-of-sport-as-a-product-1552733",
"description": "Explain the unique features of sport as a product.",
"stars": 3
},
{
"url": "\/study-help\/frank-woods-business-accounting\/a-the-summarised-statement-of-financial-position-of-newland-traders-1552737",
"description": "A The summarised statement of financial position of Newland Traders at 30 May 2013 was as follows: \\begin{tabular}{lrr} $\\mathbf{1 0 0 0}$ & $\\mathbf{1 0 0 0}$ \\\\ Non-current assets at cost & & 610...",
"stars": 3
},
{
"url": "\/study-help\/marketing-strategy-\/identify-the-differences-between-the-three-sport-sectors-and-their-1552734",
"description": "Identify the differences between the three sport sectors and their roles in sport marketing.",
"stars": 3
}
],
"next_back_navigation": {
"previous": "\/study-help\/questions\/george-and-katherine-green-are-married-with-126000-in-gross-2385449",
"next": "\/study-help\/questions\/hello-i-have-the-following-excel-homework-problem-pappys-potato-2385451"
},
"breadcrumbs": [
{
"name": "Study help",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers"
},
{
"name": "Business",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business"
},
{
"name": "Finance",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-finance"
},
{
"name": "Wizard Corporation has analyzed their customer and order handling data for the",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions\/wizard-corporation-has-analyzed-their-customer-and-order-handling-data-2385450"
}
],
"skill_details": {
"skill_id": "13",
"skill_name": "Finance",
"parent_id": "1"
}
} }
}