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 order must be expedited (rushed)

$8.00

Customer technical support calls (per call)

$12

Relationship management costs (per customer per year)

$1200

In addition to these costs, product costs amount to75% of Sales.

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

Sales $15,500

Number of orders 160

Percent of orders marked rush70%

Calls to technical support 80

Required:

Calculate the profitability of the Chester Company account.

Your Answer: