Activity$-$based costing, customer profitability

Samson Company operates a mail order business and has three major

activities: order taking, packaging, and returns. Customers call into the

order taking department to place their orders. It takes the order taking

staff a fixed amount of $5$ minutes to take each order plus $0\mathrm{.}5$ minutes

for each item in the order. Once the order taking process is complete, the

order is sent electronically to the to the packaging department. It takes

the packaging staff a fixed amount of $6$ minutes to package the order plus

$3$ minutes for each item in the order. Because it is a mail order business,

Samson allows its customers to return unwanted products. It takes the

returns staff a fixed amount of $5$ minutes to process each return order

plus $2$ minutes for each item being returned.

Hourly rates are summarized below.

Weekly Salary Weekly Hours Hourly Rate

Order taking staff $$1,1843732$

Packaging staff $$9503825$

Returns staff $$1,2243634$

Information on two of Samson's customers appears below:

Customer

$12$

Average price of each item ordered $$10$ $$10$

Average cost of each item ordered $$6$ $$6$

Number of orders $2010$

Average number of units in each order $1020$

Number of return requests $53$

Average number of items in each return request $54$

What is the amount of profit associated with each of these two customers?

Do not round intermediate calculations. Round final answer to two decimals.

Customer $1$ $Answer $1$

$350\mathrm{.}83$

Customer $2$ $Answer $2$

$416\mathrm{.}1$