Mississippi Manufacturing makes a component called B$2040.$ This component is manufactured only when ordered by a customer, so Mississippi keeps no inventory of B$2040.$ The list price is $$112$ per unit, but customers who place $$large$$ orders receive a $10\%$ 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 $14$ days for free exchange or repair.

The full cost of manufacturing a unit of B$2040$ is $$95.$ In addition, Mississippi incurs customer$-$level costs. Customer$-$level cost$-$driver rates are shown below:

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 Mississippi$$s five biggest customers follows:

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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.

Required

Calculate the customer$-$level operating income for these five customers. Use the format in Exhibit $15-3.$ Prepare a customer$-$profitability analysis by ranking the customers from most to least profitable, as in Exhibit $15-4.$