I MIDTERM EXAM - MAY 9,... O Search (Alt+Q) Insert Draw Design Layout References Mailings Review View Help Acrobat Ascent Ltd. is a company that manufactures climbing rope for mountaineering and rescue operations. They sell various types of rope to four distributors: Alpine Adventures Corporation (AAC), Mountain Supply Coop (MSC), Bigfoot Safety Supply Ltd. (BSS), Elite Mountain Equipment (EME). Currently Ascent Ltd. does not charge extra fees for any order and delivery related costs. The company president, Rolf Resche, wants an ABC customer analysis done to determine if a change in pricing policy is warranted. The customer-level cost driver rates are: Order taking $ 32 per order Product handling 5 per thousand metres Delivery by ground 1 per kilometer Delivery by air freight 15 Rush order extra cost 45 per order (delivery to air freight company) per order Rope costs $2 per metre to produce; and, sells for an average price of $3 per metre in units of 100 metres. The following table presents customer metrics: AAC MSC BSS EME Total # of units sold 2,500 8,000 4,000 500 Number of orders 1,250 3,000 4,500 500 Ground delivery kilometres 6,250 15,000 Air freight deliveries 1,125 2,700 4,500 500 Number of rush orders 100 100 4,500 500 Required: GURKIRAN KAUR GK Comments Shar a. Prepare a customer profitability report for the president using ABC analysis. Present the profit as a percentage of sales for each customer at the end of the report. b. Comment on your findings in part a. I DFocus ENG US