3. Bracelet Delights is a new company that manufactures custom jewelry. Bracelet Delights currently has six...

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3. Bracelet Delights is a new company that manufactures custom jewelry. Bracelet Delights currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: 1(Click the icon to view the activities.) 2(Click the icon to view the customer data.) Read the requirements. Requirement 1. Calculate the customer-level operating income for each customer. (Complete all answer boxes. Enter a "0" for any zero balances. Use parentheses or a minus sign when entering operating losses.) Revenue Cost of product Gross profit Customer-level costs Customer orders Customer fittings Rush order costs Customer 01 02 03 04 05 06 $ 900 $ 720 5,000 $ 4,000 290 $ 232 2,600 $ 2,080 5,500 $ 550 4,400 440 Returns for repair Customer-level operating income (loss) Rank the customers in order of most to least profitable and prepare a customer-profitability analysis in terms of operating income. (Use parentheses or a minus sign when entering negative numbers and losses. Enter percents rounded to two decimal places, X.XX%) Customer Customer-level Number Oper. Income Customer Revenue Customer-Level Oper. Income + Cumulative Customer-Level Cumulative Customer- Level Oper. Income as a % of Total Customer- Revenue Oper. Income Level Oper. Income (1) % % (2) % % (3) % % (4) % % (5) % % % % (6) Requirement 2. Are any customers unprofitable? What is causing this? What should Bracelet Delights do about these customers? (7) unprofitable customer(s). Unprofitable customers, if there are any, or those who have a (8) (9) operating income to revenue percentage, tend to have number of orders, rush orders, and activity levels and/or low revenues. Those customers with a (10). return visits are usually the customers with the lowest operating income amounts. Bracelet Delights could make these customers more profitable by: (If a box is not used in the table, leave the box empty; do not select an answer.) (11) (12) (13) (14) (15) (16) Whatever decision it takes, Bracelet Delights must also consider the effect the decision might have on (17) 1: More Info 1. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $40 per hour spent with a customer. 2. Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $24 per hour. 3. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $110 per rush order. 4. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $22 per return visit. 2: Data Table (12) O (13) (14) (15) charging a small fee for repairs charging more for rush orders O hiring more employees to handle rush orders charging a small fee for repairs charging more for rush orders O hiring more employees to handle rush orders 0000 OOOO charging a small fee for repairs charging more for rush orders hiring more employees to handle rush orders charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders (16) O 01 Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 80% of the selling price. Customer number 02 03 04 05 06 Sales revenue $ 900 $ Cost of item(s) $ 720 $ 5,000 $ 4,000 $ 290 $ 232 $ 2,600 $ 2,080 $ 5,500 $ 550 4,400 $ 440 (17) Hours spent on customer order 3 7 2 8 15 2 Hours on fittings 1 1 1 2 6 1 Number of rush orders 0 2 1 0 2 0 Number of return visits 0 1 2 0 3 1 0000 the number of hours spent on customer order. the number of rush orders. total sales. increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service increasing the selling price paying a vendor to handle repairs O requiring a minimum amount of orders for free post-sales service requiring a minimum total revenue for free post-sales service 0000 increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service 0000 increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service requiring a minimum total revenue for free post-sales service increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service Calculate the customer-level operating income for each customer. Rank the customers in order of most to least profitable and prepar a customer-profitability analysis. Are any customers unprofitable? What is causing this? What should Bracelet Delights do about these customers? 3: Requirements 1. 2. 82 01 04 05 (3) O 02 06 03 0000 01 8 0000 (1) O O 01 550300 02 000 06 88 04 (2) 05 04 01 03 05 02 06 0000 04 (4) O 05 06 83 0000 04 (5) 01 05 02 03 06 00 (6) 0000 O 01 02 000 8 8 04 (7) 05 06 000 Customer 03 is an (8) Customers 06 and 03 are There are no 03 high (9) high (10) large low low O small (11) charging a small fee for repairs charging more for rush orders hiring more employees to handle rush orders increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service requiring a minimum total revenue for free post-sales service 3. Bracelet Delights is a new company that manufactures custom jewelry. Bracelet Delights currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: 1(Click the icon to view the activities.) 2(Click the icon to view the customer data.) Read the requirements. Requirement 1. Calculate the customer-level operating income for each customer. (Complete all answer boxes. Enter a "0" for any zero balances. Use parentheses or a minus sign when entering operating losses.) Revenue Cost of product Gross profit Customer-level costs Customer orders Customer fittings Rush order costs Customer 01 02 03 04 05 06 $ 900 $ 720 5,000 $ 4,000 290 $ 232 2,600 $ 2,080 5,500 $ 550 4,400 440 Returns for repair Customer-level operating income (loss) Rank the customers in order of most to least profitable and prepare a customer-profitability analysis in terms of operating income. (Use parentheses or a minus sign when entering negative numbers and losses. Enter percents rounded to two decimal places, X.XX%) Customer Customer-level Number Oper. Income Customer Revenue Customer-Level Oper. Income + Cumulative Customer-Level Cumulative Customer- Level Oper. Income as a % of Total Customer- Revenue Oper. Income Level Oper. Income (1) % % (2) % % (3) % % (4) % % (5) % % % % (6) Requirement 2. Are any customers unprofitable? What is causing this? What should Bracelet Delights do about these customers? (7) unprofitable customer(s). Unprofitable customers, if there are any, or those who have a (8) (9) operating income to revenue percentage, tend to have number of orders, rush orders, and activity levels and/or low revenues. Those customers with a (10). return visits are usually the customers with the lowest operating income amounts. Bracelet Delights could make these customers more profitable by: (If a box is not used in the table, leave the box empty; do not select an answer.) (11) (12) (13) (14) (15) (16) Whatever decision it takes, Bracelet Delights must also consider the effect the decision might have on (17) 1: More Info 1. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $40 per hour spent with a customer. 2. Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $24 per hour. 3. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $110 per rush order. 4. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $22 per return visit. 2: Data Table (12) O (13) (14) (15) charging a small fee for repairs charging more for rush orders O hiring more employees to handle rush orders charging a small fee for repairs charging more for rush orders O hiring more employees to handle rush orders 0000 OOOO charging a small fee for repairs charging more for rush orders hiring more employees to handle rush orders charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders (16) O 01 Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 80% of the selling price. Customer number 02 03 04 05 06 Sales revenue $ 900 $ Cost of item(s) $ 720 $ 5,000 $ 4,000 $ 290 $ 232 $ 2,600 $ 2,080 $ 5,500 $ 550 4,400 $ 440 (17) Hours spent on customer order 3 7 2 8 15 2 Hours on fittings 1 1 1 2 6 1 Number of rush orders 0 2 1 0 2 0 Number of return visits 0 1 2 0 3 1 0000 the number of hours spent on customer order. the number of rush orders. total sales. increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service increasing the selling price paying a vendor to handle repairs O requiring a minimum amount of orders for free post-sales service requiring a minimum total revenue for free post-sales service 0000 increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service 0000 increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service requiring a minimum total revenue for free post-sales service increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service Calculate the customer-level operating income for each customer. Rank the customers in order of most to least profitable and prepar a customer-profitability analysis. Are any customers unprofitable? What is causing this? What should Bracelet Delights do about these customers? 3: Requirements 1. 2. 82 01 04 05 (3) O 02 06 03 0000 01 8 0000 (1) O O 01 550300 02 000 06 88 04 (2) 05 04 01 03 05 02 06 0000 04 (4) O 05 06 83 0000 04 (5) 01 05 02 03 06 00 (6) 0000 O 01 02 000 8 8 04 (7) 05 06 000 Customer 03 is an (8) Customers 06 and 03 are There are no 03 high (9) high (10) large low low O small (11) charging a small fee for repairs charging more for rush orders hiring more employees to handle rush orders increasing the selling price paying a vendor to handle repairs requiring a minimum amount of orders for free post-sales service requiring a minimum total revenue for free post-sales service