Customer profitability analysis

Assignment Help Finance Basics
Reference no: EM13852212

Customer Profitability Analysis

Roland, Inc. provides residential painting services for three home building companies, Alpha, Beta, and Gamma, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by Roland for return touchups and refinishes after the homeowner occupies the home. Roland paints each house on a square footage contract price, which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, Roland generates about one-third of its total revenues and gross profits from each of the three builders. Roland has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered:

Major refinishes Hours on job $70
Touchups Number of visits $180
Communication Number of calls $20
Alpha 80 150 360
Beta 35 110 205
Gamma 42 115 190

(a) Assuming that each of the three customers produces gross profits of $100,000, calculate the profitability from each builder after taking into account the support activity required for each builder.

Alpha
Answer:$ ???????

Beta

Answer: $ ???????

Gamma

Answer:$ ???????

Reference no: EM13852212

Questions Cloud

Construct a frequency distribution table of the scores : Construct a frequency distribution table of the scores having approximately 10 class intervals and construct a cumulative percentage curve. Use your curve to determine the percentage of scores that fall below a value of 55.
Difference between a conceptual and operational definition : Why are valid measures important in empirical research? What is the difference between a conceptual and an operational definition? Why do questions permitting multiple responses require special attention during coding
What is the amplitude of wave : What is the amplitude of this wave? What is the wavelength of this wave?
Stocks and bonds : Mr. Hillbrandt is impressed with your ability to explain financial concepts so he asks for help with learning about stock valuation. Mr. Hillbrandt really liked the examples you provided last time (module 1), so it seems as if you need to sit down an..
Customer profitability analysis : Roland, Inc. provides residential painting services for three home building companies, Alpha, Beta, and Gamma, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred ..
Do you think your personality is more a function of nature : Do your scores make sense to you based on how the traits were described in this chapter? Explain why or why not. Do you think your personality is more a function of nature (e.g., come from your parents in that you have shared genes) OR nuture (e.g.,..
Term paper on judging project success : A case study on Hong Kong Disneyland, focusing on the topic of week three - prepare a term paper on judging project success
Did interest rates increase or decrease : Did interest rates increase or decrease?  How do you know? What was Elliott's profit or loss from this contract (ignoring transaction costs)?
Name one similarity and one difference to the argentinean : Name one similarity and one difference to the Argentinean currency crisis of a few years ago to the Euro based on the Greek crisis over the last year.- Provide any references used

Reviews

Write a Review

Finance Basics Questions & Answers

  Mary wants to invest her recent bonus in an eight-year 10

mary wants to invest her recent bonus in an eight-year 10 percent coupon bond that pays semiannual coupon payments. the

  Calculate hassan madhatter total assets

Last year, Hassan's Madhatter, Inc., had an ROA of 7 percent, a profit margin of 12.95 percent, and sales of $20 million. Calculate Hassan's Madhatter's total assets.

  Considering leasing a radiographic x-ray machine

Considering leasing a radiographic x-ray machine.

  What is maximum price per share schultz should pay for arras

Arras currently has 3 million shares of stock outstanding and $25 million in debt outstanding. What is the maximum price per share Schultz should pay for Arras?

  Costs of capital for different operating divisions

Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divi..

  If the tax laws were revised so that only 50 of any firms

if the tax laws were revised so that only 50 of any firms interest expense were tax deductible.a. what will be the

  Describe the advantages & disadvantages of using ilit

If possible, please describe the advantages & disadvantages of using ILIT's in estate planning.

  Public accounting

Seven years ago, after 15 years in public accounting, Stanley Booker, CPA, resigned his position as manager of cost systems for Davis, Cohen, and O?Brien Public Accountants and started Track Software, Inc. In the 2 years preceding his departure from ..

  Determining the proper cash flow amount

Determine the proper cash flow amount to use as initial investment in fixed assets when estimating this project? Describe why?

  Competition of the product category

1. Describe the product you selected in terms of the four utilities of customer value. 2. Identify the product's target market at home and in your stated foreign market. 3. Indicate the competition of the product category in both home and foreign mar..

  Issues identified a major consideration for genesis is

issues identified. a major consideration for genesis is assessing those short-term and long-term economic factors which

  Determine an initial estimateof the value of the home sarah

Sarah Fluggel is considering the purchase of ahome located at 2121 Tarter Circle in Frisco,Texas.The home has 3,000 square feet of heated and cooled living area,and the current owners are asking a price of $375,000for it.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd