Quebec Ltd. is a company that manufactures climbing rope for mountaineering and rescue operations. They sell...

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Quebec 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, Quebec 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 Product handling Delivery by ground Delivery by air freight Rush order extra cost $32 5 1 15 45 Rope costs $2 per metre to produce and sells for an average price of $3 per metre in units of 100 metres. per order per thousand metres per kilometre per order (delivery to air freight company) per order The following table presents customer metrics: Total # of units sold Number of orders Ground delivery kilometres Air freight deliveries Number of rush orders Required: AAC 2,500 1,250 6,250 100 MSC 8,000 3,000 15,000 2,700 100 BSS 4,000 4,500 4,500 4,500 EME 500 500 500 500 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. Quebec 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, Quebec 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 Product handling Delivery by ground Delivery by air freight Rush order extra cost $32 5 1 15 45 Rope costs $2 per metre to produce and sells for an average price of $3 per metre in units of 100 metres. per order per thousand metres per kilometre per order (delivery to air freight company) per order The following table presents customer metrics: Total # of units sold Number of orders Ground delivery kilometres Air freight deliveries Number of rush orders Required: AAC 2,500 1,250 6,250 100 MSC 8,000 3,000 15,000 2,700 100 BSS 4,000 4,500 4,500 4,500 EME 500 500 500 500 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.