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

Order processing cost per order $7

Additional costs if orders must be expelled $9.50

(rushed)

Customer technical support calls $12

(per call)

Relationship management costs $1200

(per customer per year)

In addition to these costs, products costs amount 75% of sales.

In the prior year, Wizard had the following experience with one of it's customers , Chester company :

Sales $16,000

Numbers of orders 160

percent of orders marked rushed 70%

calls to technical support 80

Required:

Calculate the profitability of the chester company account