Data Information about Maynard's five biggest customers follows: Number of units purchased Discounts given Number of...

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Data Information about Maynard's five biggest customers follows: Number of units purchased Discounts given Number of orders Number of cases Number of rush orders Number of units exchanged/repaired Customer A B D 5,800 1,300 2,100 4,500 E 7,700 8% 8% 0% 8% 8% on half the units 7 11 60 21 20 570 130 100 410 890 4 8 3 0 11 11 80 9 30 190 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. Activities and Cost Drivers The full cost of manufacturing a unit of B2040 is $94. In addition, Maynard incurs customer-level costs. Customer-level cost-driver rates are shown below: Order taking Product handling Rush-order processing $300 per order $13 per case $530 per rush order Exchange and repair costs $45 per unit Required 1. Calculate the customer-level operating income for these five customers. Use the format provided. Prepare a customer-profitability analysis by ranking the customers from most to least profitable. 2. Discuss the results of your customer-profitability analysis. Does Maynard have unprofitable customers? Is there anything Maynard should do differently with its five customers? Requirement 1. Calculate the customer-level operating income for these five customers. Use the format provided. Prepare a customer-profitability analysis by ranking the customers from most to least profitable. Begin by calculating the customer-level operating income for these five customers. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign when entering operating losses.) Begin by calculating the customer-level operating income for these five customers. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign when entering operating losses.) Gross margin Customer-level operating costs: Total customer-level operating costs Customer-level operating income (loss) A B D E Data Information about Maynard's five biggest customers follows: Number of units purchased Discounts given Number of orders Number of cases Number of rush orders Number of units exchanged/repaired Customer A B D 5,800 1,300 2,100 4,500 E 7,700 8% 8% 0% 8% 8% on half the units 7 11 60 21 20 570 130 100 410 890 4 8 3 0 11 11 80 9 30 190 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. Activities and Cost Drivers The full cost of manufacturing a unit of B2040 is $94. In addition, Maynard incurs customer-level costs. Customer-level cost-driver rates are shown below: Order taking Product handling Rush-order processing $300 per order $13 per case $530 per rush order Exchange and repair costs $45 per unit Required 1. Calculate the customer-level operating income for these five customers. Use the format provided. Prepare a customer-profitability analysis by ranking the customers from most to least profitable. 2. Discuss the results of your customer-profitability analysis. Does Maynard have unprofitable customers? Is there anything Maynard should do differently with its five customers? Requirement 1. Calculate the customer-level operating income for these five customers. Use the format provided. Prepare a customer-profitability analysis by ranking the customers from most to least profitable. Begin by calculating the customer-level operating income for these five customers. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign when entering operating losses.) Begin by calculating the customer-level operating income for these five customers. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign when entering operating losses.) Gross margin Customer-level operating costs: Total customer-level operating costs Customer-level operating income (loss) A B D E