Delta Products has determined the following costs:
Order processing (per order) ........................................................$ 6
Additional handling costs if order marked rush (per order) ....................$11
Customer service calls (per call) ...................................................$12
Relationship management costs (per customer per year) ...................$3,500
In addition to these costs, product costs amount to 85 percent of sales. In the prior year, Delta had the following experience with one of its customers, Johnson Brands:
Sales .......................................$55,000
Number of orders .............................250
Percent of orders marked rush .............70%
Calls to customer service ....................160
Required
Calculate the profitability of the Johnson Brands account.