Please do not give solution in image format thanku kncesRequired:1. Using customers as the cost objects, classify the activity costs Into cost categories (unit-level, batch-level, etc.) and compute the totalcost for Colleen Company to service Jerry, Incorporated and Kate Company.2. Compare the profitability of these two customers.Complete this question by entering your answers in the tabs below.Required 1 Required 2Using customers as the cost objects, classify the activity costs Into cost categories (unit-level, batch-level, etc.) and computethe total cost for Colleen Company to service Jerry, Incorporated and Kate Company.Customer unit level costs:Sales returnsCustomer batch level costs:Customer sustaining costs:TotalRequired 1 Required 2Jerry,IncorporatedNet sales$Operating income (loss)Operating margin (loss)Required:1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the totalcost for Colleen Company to service Jerry, Incorporated and Kate Company.2. Compare the profitability of these two customers.Show Transcribed ToutComplete this question by entering your answers in the tabs below.Compare the profitability of these two customers. (Loss amounts should be indicated by a minus sign. Round operatingmargin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).)Jerry,Incorporated00Kate Company0%SKate Company< Required 1000%Required 2 > Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers,Jerry,Incorporated33,000Number of ordersUnits per orderSales returnstNumber of returnsTotal units returnedNumber of sales callsActivitySales callsOrder processingDeliveriesSales returnsSales salary1Colleen sells its products at $180 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly andno accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30months, the firm has determined the following activity costs:6011Required 1Required 2KateCompany40180$700 per visit210 per order31206Cost Driver and RateRequired:1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the totalcost for Colleen Company to service Jerry, Incorporated and Kate Company.2. Compare the profitability of these two customers.310 per order200 per return and $3 per unit returned92,000 per monthComplete this question by entering your answers in the tabs below.Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and computethe total cost for Colleen Company to service Jerry, Incorporated and Kate Company.

Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Jerry, Incorporated 3 3,000 Sales returns Sales salary 1 60 11 Kate Company 40 180 Colleen sells its products at $180 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: 3 120 Cost Driver and Rate $700 per visit 210 per order 310 per order 200 per return and $3 per unit returned 92,000 per month Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2. Compare the profitability of these two customers.

Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Jerry, Incorporated 3 3,000 Sales returns Sales salary 1 60 11 Kate Company 40 180 Colleen sells its products at $180 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: 3 120 Cost Driver and Rate $700 per visit 210 per order 310 per order 200 per return and $3 per unit returned 92,000 per month Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2. Compare the profitability of these two customers.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 1P

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