Question: Help needed Problem Set 1 - Mid Term i Saved Help Save & Exit Submit 16 Power Corporation sells a line of power tools to
Help needed

Problem Set 1 - Mid Term i Saved Help Save & Exit Submit 16 Power Corporation sells a line of power tools to home improvement chains, generating a cost of goods sold equal to 60% of net sales. The selected data that follow relate to the period just ended for the company's three largest customers: Weekend Project, Tool Mart, and Fix-It City Power's management recently attended a seminar and learned that customers with excessive requests and demands can have a significant, negative impact on corporate profitability. Weekend Project Tool Mart Fix-It City Gross sales volume: Dollars $1, 920, 008 $4,740, 080 $5,414, 400 Number of Orders 50 191 141 Type of order: Regular 32 143 118 Rush 18 48 23 Sales returns: Dollars $ 108, 080 $ 388, 080 $ 248,080 Number of returns 11 28 16 Total customer-related costs $ 253,000 $ 903,000 $ 452,080 Required: For each of the three chains, compute: (For Requirement 1, 3-4, round your answers to 2 decimal places. Round "Average order size" to the nearest whole number.) 1. Total customer-related costs as a percentage of gross margin. 2. The average order size (ignoring sales returns) 3. The ratio of regular orders to rush orders. 4. The number of sales returns as a percentage of the number of total orders. Weekend Project Tool Mart Fix-It City Customer-related costs % % Average order size Ratio of regular orders Number of sales returns % %
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