QuickHelper

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About QuickHelper

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Teaching Since: May 2017
Last Sign in: 355 Weeks Ago, 4 Days Ago
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Education

  • MBA, PHD
    Phoniex
    Jul-2007 - Jun-2012

Experience

  • Corportae Manager
    ChevronTexaco Corporation
    Feb-2009 - Nov-2016

Category > Accounting Posted 14 Jun 2017 My Price 15.00

Need business and finance help to calculate the profitability of the Chester Company account.

Question description

 

 

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)

  $10.00

Customer technical support calls (per call)

  $12

Relationship management costs (per customer per year)

  $1200

In addition to these costs, product costs amount to  75% of Sales.

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

Sales

  $15,500

Number of orders

  160

Percent of orders marked rush

  70%

Calls to technical support

  80

Required:

Calculate the profitability of the Chester Company account.

Answers

QuickHelper
(10)
Status NEW Posted 14 Jun 2017 07:06 PM My Price 15.00

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