Question: Please Show All Steps with explanations 7. Calculate customer net profit and customer profit margin Joyful Journeys offers several services to customers. Suzanne Joy realizes

 Please Show All Steps with explanations 7. Calculate customer net profit

Please Show All Steps with explanations

7. Calculate customer net profit and customer profit margin Joyful Journeys offers several services to customers. Suzanne Joy realizes that some customers use more services than others, so the company has conducted a customer profitability analysis that identified the following cost pools and activity drivers: Cost Pool Online reservations Phone reservations Ticket mailings Courier deliveries Total Cost $120,000 450,000 250,000 80,000 $ 900,000 Total Activity 60,000 online reservations 90,000 phone reservations 125,000 mailings 4,000 deliveries a. Calculate the activity rate for each cost pool. b. Two of Joyful Journey's customers have the following activity levels. Calculate the customer net profit and customer profit margin for each customer: Customer #1 $ 180,000 $ 126,000 800 Customer #2 $ 190,000 $ 133,000 Ticket purchases Ticket cost Online reservations Phone reservations Ticket mailings Courier deliveries 800 700 300 600

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