EXERCISE 8-8. Customer Profitability Analysis Using CRM (customer relationship management) software, Delta Products has determined the following costs:

Order processing (per order) $ 5.00 Additional handling costs if order marked rush (per order) 8.50 Customer service calls (per call) 10.00 Relationship management costs (per customer per year) $2,000.00 In addition to these costs, product costs amount to 90 percent of sales.

In the prior year, Delta had the following experience with one of it's customers, Johnson Brands:

Sales $53,800 Number of orders 200 Percent of orders marked rush 60 Calls to customer service 140 Required Calculate the profitability of the Johnson Brands account.