Triumph Corporation has analyzed their customer and order handling data for the past year and has determined the following costs:
Order processing cost per $8.00
Additional costs if under
must be expedited (rushed) $9.00
Customer technical support $13.00
Relationship management
costs (Per customer per year) $1,800.00
In addition to these costs, product costs amount to 80% of sales.
In the prior year, triumph had the following experience with one of its customers, Julius Company:
Sales $20,000
Number of orders 170
Percent of orders marked rush 80%
Calls to technical support 90
REQUIRED:
Calculate the profitability of the Julius Company account.
Sales Amount
Less:
Title? Formula?
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Profitability of Julius
Company account Formula?