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Calculate the profitability of the chester company account

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Reference no: EM132594692

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

$7Additional costs if order must be expedited (rushed)

$9.50 Customer technical support calls (per call)

$12Relationship 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

$15,000Number of orders

160Percent of orders marked rush

70%Calls to technical support 80

Required:

Calculate the profitability of the Chester Company account.

Reference no: EM132594692

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