1.
Customer | ||||||
01 | 02 | 03 | 04 | 05 | 06 | |
Revenues | $ 650 | $ 4,200 | $ 290 | $ 2,600 | $ 4,600 | $ 700 |
Cost of Product | 390 | 2,520 | 174 | 1,560 | 2,760 | 420 |
Gross Profit | 260 | 1,680 | 116 | 1,040 | 1,840 | 280 |
Customer-level costs | ||||||
Customer orders | 175 | 280 | 35 | 280 | 770 | 105 |
Customer fittings | 60 | 180 | 0 | 0 | 0 | 60 |
Rush order costs | 0 | 100 | 100 | 100 | 400 | 0 |
Returns for repair | 0 | 0 | 28 | 56 | 84 | 28 |
Customer-level operating income ( loss ) | $ 25 | $ 1,120 | $ (47) | $ 604 | $ 586 | $ 87 |
Customer | Rank |
02 | 1 |
04 | 2 |
05 | 3 |
06 | 4 |
01 | 5 |
03 | 6 |
2. Customer 03 is unprofitable. This is because the order cannot absorb the rush order cost and the cost of return for repair.
Bling Beauty can either eliminate this customer, or increase the selling price on this order.
quirements nt 1. Calculate the customer-level operating income for each customer (Complete all answer boxes. Enter...
Earng Delights is a new company that manufactures custom jewelry. Earing Delights currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: (Click to view the activities) (Click to view the customer data) Read the requirements Requirement 1. Calculate the customer-level operating income for each customer. (Complete all answer boxes. Enter a '0" for any zero balances. Use parentheses or a minus...
Montreal Manufacturing makes a component caled 2040. This component is inanufactured only when ardered by a customer, so Mississippi keeps no inventory of B2040. The list price is $110 per unit, but customers who place "large" orders receive a 14% discount on price. The customers are manufacturing fim. Currently, the salespeople decide whether an order s large enough to quality for the discount. When the product is finished, it is packed in cases af 10. the component rends to be...
Minnesota Manufacturing makes a component called Upper B2040. This component is manufactured only when ordered by a customer, so Mississippi keeps no inventory of Upper B2040. The list price is $114 per unit, but customers who place "large" orders receive a 14% discount on price. The customers are manufacturing firms. Currently, the salespeople decide whether an order is large enough to qualify for the discount. When the product is finished, it is packed in cases of 10. If the component...
Pharmax Distributors specializes in the distribution of pharmaceutical products at the retail level. Pharmax's customer base is comprised of three main retail groups: general supermarket chains, large drugstore chains, and small, single-store "Ma & Pa" pharmacies. To evaluate the relative profitability of each customer group, Pharmax plans to use an allocation system that recognizes the relative demands that these groups place on the company's resources. Parmax's chief accountant examined the firm's support costs and activities and collected the following data...
Pharmax Distributors specializes in the distribution of pharmaceutical products at the retail level. Pharmax's customer base is comprised of three main retail groups: general supermarket chains, large drugstore chains, and small, single-store "Ma & Pa" pharmacies. To evaluate the relative profitability of each customer group, Pharmax plans to use an allocation system that recognizes the relative demands that these groups place on the company's resources. Parmax's chief accountant examined the firm's support costs and activities and collected the following data...
Pharmax Distributors specializes in the distribution of pharmaceutical products at the retail level. Pharmax's customer base is comprised of three main retail groups: general supermarket chains, large drugstore chains, and small, single-store "Ma & Pa" pharmacies. To evaluate the relative profitability of each customer group, Pharmax plans to use an allocation system that recognizes the relative demands that these groups place on the company's resources. Parmax's chief accountant examined the firm's support costs and activities and collected the following data...
Pharmax Distributors specializes in the distribution of pharmaceutical products at the retail level. Pharmax's customer base is comprised of three main retail groups: general supermarket chains, large drugstore chains, and small, single-store "Ma & Pa" pharmacies. To evaluate the relative profitability of each customer group, Pharmax plans to use an allocation system that recognizes the relative demands that these groups place on the company's resources. Parmax's chief accountant examined the firm's support costs and activities and collected the following data...
Pharmax Distributors specializes in the distribution of pharmaceutical products at the retail level. Pharmax's customer base is comprised of three main retail groups: general supermarket chains, large drugstore chains, and small, single-store "Ma & Pa" pharmacies. To evaluate the relative profitab recognizes the relative demands that these groups place on the company's resources. Parmax's chief accountant examined the firm's support costs and activities and collected the following data for a typical operating period: Support Activity Order processing Line item processing...
Pharmax Distributors specializes in the distribution of pharmaceutical products at the retail level. Pharmax's customer base is comprised of three main retail groups: general supermarket chains, large drugstore chains, and small, single store "Ma & Pa' pharmacies. To evaluate the relative profitability of each customer group, Pharmax plans to use an allocation system that recognizes the relative demands that these groups plece on the company's resources. Parmex's chier eccountant examined the firm's support costs and activities and collected the following...
Pharmax Distributors specializes in the distribution of pharmaceutical products at the retail level. Pharmax's customer base is comprised of three main retail groups: general supermarket chains, large drugstore chains, and small, single-store "Ma & Pa" pharmacies. To evaluate the relative profitability of each customer group, Pharmax plans to use an allocation system that recognizes the relative demands that these groups place on the company's resources. Parmax's chief accountant examined the firm's support costs and activities and collected the following data...