Question $4(1$ point$)$

Wizard Corporation has analyzed their customer and order handling data for the past year and has determined the following costs:

Order processing cost per order

$$7$

Additional costs if $$1000$ order must be expedited $($rushed$)$

Customer techrical

support calls $($per call$)$ $$12$

Relationship $$1200$

management costs $($per customer per year$)$

In addition to these costs, product costs amount to $75\%$ of Sales.

In the prior year, Wizard had the following experience with one of its customers, Chester Company.

Sales $$15,000$

Number of orders $,160$

Percent of orders $70\%$ marked rush

Calts to technical

support $80$

Reguired:

Calculate the profitability of the Chester Company account.

Your Answer: