Antelope Manufacturing makes a component called P30. This component is manufactured only when ordered by a customer, so Antelope keeps no inventory of P30. The list price is $115 per unit, but customers who place "large" orders receive a 12% discount on price. The customers are manufacturing firms. Currently, the salespeople decide whether an order is large enough to qualify for the discount. When the product is finished, it is packed in cases of 10. If the component needs to be exchanged or repaired, customers can come back within 10 days for free exchange or repair.

The full cost of manufacturing a unit of A1030 is $95. In addition, Antelope incurs customer- level costs.

Customer- level cost- driver rates are:

Order taking	$360 per order
Product handling	$15 per case
Rush order processing	$560 per rush order
Exchange and repair costs	$50 per unit

Information about Antelope's five biggest customers follows:

All customers except E ordered units in the same order size. Customer E's order quantity varied, so E got a discount part of the time but not all the time.

Requirement:

1. Use Excel to calculate the customer- level operating income for these five customer. Prepare customer- profitability analysis by ranking the customers from most to least profitable. Answer in excel chart here

2. Discuss the results of your customer- profitability analysis. Does Antelope have unprofitable customers? Is there anything Antelope should do differently with its five customers? Write in long paragraph with more specific details.

\begin{tabular}{|l|l|l|l|l|l|} \hline & A & B & C & D & E \\ \hline Number of units purchased & 5,400 & 1,800 & 1,200 & 4,400 & 8,100 \\ \hline Discounts given & 12% & 12% & 0 & 12% & 12%(halfunits) \\ \hline Number of orders & 8 & 16 & 52 & 20 & 16 \\ \hline Number of cases & 540 & 180 & 120 & 440 & 810 \\ \hline Number of rush orders (free) & 1 & 6 & 1 & 0 & 5 \\ \hline Numberofunitsexchanged/repaired & 14 & 72 & 16 & 40 & 180 \\ \hline \end{tabular}