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 order must be expedited (rushed)$8.00

Customer technical support calls (per call) $12

Relationship management costs (per customer per year)$1200

In addition to these costs, product costs amount to75% of Sales.

In the prior year, Wizard had the following experience with one of its customers, Chester Company:

Sales$16,000

Number of orders160

Percent of orders marked rush 70%

Calls to technical support 80

Required:

Calculate the profitability of the Chester Company account.