Requirement 2)

Are any customer unprofitable? What is causing this? What should Jewel Beauty do about these customers?

(Customer 03 and 01 are, Customer 03 is an, There is no) unprofitable customer(s).

Unprofitable customers, if there are any, or those who have a (high, low) operating income to revenue percentage, tend to have (high, low) activity levels and/or low revenues. Those customers with a (large, small) number of orders, rush orders, and return visits are usually the customers with the lowest operating income amounts.

Jewel Beauty could make these customers more profitable by: (If a box is not used in the table, leave the box empty; do not select an answer.)

Option> Charging a small fee for repairs, Charging more for rush orders, Hiring more employees to handle rush orders, Increasing the selling price, Paying a vendor to handle repairs, Requiring a minimum amount of orders for free post-sales service, Requiring a minimum total revenue for free post-sales service

Whatever decision it takes, Jewel Beauty must also consider the effect the decision might have on

(The number of hours spent on customer order, The number of rush orders, Total sales)

Jewel Beauty is a new company that manufactures custom jewelry. Jewel Beauty currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: (Click the icon to view the activities.) (Click the icon to view the customer data.) Read the requirements. Data table Requirement 1. Calculate the customer-level operating income for each customer. (Complete all answer boxes. Enter a "0" | 02 Customer 01 02 03 04 05 06 Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 60% of the selling price. Customer number 01 03 04 05 06 Sales revenue $ 650 $ 3,500 $ 290 $ 3,000 $ 4,800 $ 740 Cost of item(s) $ 390 $ 2,100 $ 174 $ 1,800 $ 2,880 $ 444 Hours spent on customer order 5 8 2 2. 7 15 2 Hours on fittings 2 2 1 1 4. 1 Number of rush orders 0 1 2 4 0 Number of return visits 0 0 1 0 4 1 Revenue $ 650 $ 290 $ 3,000 $ 740 3,500 $ 2,100 4,800 $ 2.880 390 174 1,800 444 Cost of product Gross profit 1 Customer-level costs Customer orders Customer fittings Rush order costs Print Done Returns for repair Customer-level operating income (loss) Rank the customers in order of most to least profitable and prepare a customer-profitability analysis in terms of operating income. (Use parentheses or a minus sign when entering negative numbers and losses. Enter percents rounded to two decimal places, X.XX%) Cumulative Customer- Rank the customers in order of most to least profitable and prepare a customer-profitability analysis in terms of operating income. (Use parentheses or a minus sign when entering negative numbers and losses. Enter percents rounded to two decimal places, X.XX%) Cumulative Customer- Cumulative Level Oper. Income as a Customer-Level Oper. Income - Customer Customer % of Total Customer- Customer-level Oper. Income Customer-Level Oper. Income Number Revenue Revenue Level Oper. Income % % % % % % % % % % % % Requirement 2. Are any customers unprofitable? What is causing this? What should Jewel Beauty do about these customers? unprofitable customer(s). activity levels and/or low revenues. Those customers with a V number of orders, rush orders, and return visits are Unprofitable customers, if there are any, or those who have a v operating income to revenue percentage, tend to have usually the customers with the lowest operating income amounts. Jewel Beauty could make these customers more profitable by: (If a box is not used in the table, leave the box empty, do not select an answer.) Whatever decision it takes, Jewel Beauty must also consider the effect the decision might have on Jewel Beauty is a new company that manufactures custom jewelry. Jewel Beauty currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: (Click the icon to view the activities.) E: (Click the icon to view the customer data.) RE More info 1. 2. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $30 per hour spent with a customer. Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $29 per hour. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $100 per rush order. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $25 per return visit. 3. R 4. UI - x visits are Requirements us Print Done JE 1. Calculate the customer-level operating income for each customer. Rank the customers in order of most to least profitable and prepare a customer-profitability analysis. 2. Are any customers unprofitable? What is causing this? What should Jewel Beauty do about these customers? Print Done Whatever decision it takes, Jewel Beauty must also consider the effect the decision might have on Jewel Beauty is a new company that manufactures custom jewelry. Jewel Beauty currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: (Click the icon to view the activities.) (Click the icon to view the customer data.) Read the requirements. Data table Requirement 1. Calculate the customer-level operating income for each customer. (Complete all answer boxes. Enter a "0" | 02 Customer 01 02 03 04 05 06 Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 60% of the selling price. Customer number 01 03 04 05 06 Sales revenue $ 650 $ 3,500 $ 290 $ 3,000 $ 4,800 $ 740 Cost of item(s) $ 390 $ 2,100 $ 174 $ 1,800 $ 2,880 $ 444 Hours spent on customer order 5 8 2 2. 7 15 2 Hours on fittings 2 2 1 1 4. 1 Number of rush orders 0 1 2 4 0 Number of return visits 0 0 1 0 4 1 Revenue $ 650 $ 290 $ 3,000 $ 740 3,500 $ 2,100 4,800 $ 2.880 390 174 1,800 444 Cost of product Gross profit 1 Customer-level costs Customer orders Customer fittings Rush order costs Print Done Returns for repair Customer-level operating income (loss) Rank the customers in order of most to least profitable and prepare a customer-profitability analysis in terms of operating income. (Use parentheses or a minus sign when entering negative numbers and losses. Enter percents rounded to two decimal places, X.XX%) Cumulative Customer- Rank the customers in order of most to least profitable and prepare a customer-profitability analysis in terms of operating income. (Use parentheses or a minus sign when entering negative numbers and losses. Enter percents rounded to two decimal places, X.XX%) Cumulative Customer- Cumulative Level Oper. Income as a Customer-Level Oper. Income - Customer Customer % of Total Customer- Customer-level Oper. Income Customer-Level Oper. Income Number Revenue Revenue Level Oper. Income % % % % % % % % % % % % Requirement 2. Are any customers unprofitable? What is causing this? What should Jewel Beauty do about these customers? unprofitable customer(s). activity levels and/or low revenues. Those customers with a V number of orders, rush orders, and return visits are Unprofitable customers, if there are any, or those who have a v operating income to revenue percentage, tend to have usually the customers with the lowest operating income amounts. Jewel Beauty could make these customers more profitable by: (If a box is not used in the table, leave the box empty, do not select an answer.) Whatever decision it takes, Jewel Beauty must also consider the effect the decision might have on Jewel Beauty is a new company that manufactures custom jewelry. Jewel Beauty currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: (Click the icon to view the activities.) E: (Click the icon to view the customer data.) RE More info 1. 2. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $30 per hour spent with a customer. Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $29 per hour. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $100 per rush order. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $25 per return visit. 3. R 4. UI - x visits are Requirements us Print Done JE 1. Calculate the customer-level operating income for each customer. Rank the customers in order of most to least profitable and prepare a customer-profitability analysis. 2. Are any customers unprofitable? What is causing this? What should Jewel Beauty do about these customers? Print Done Whatever decision it takes, Jewel Beauty must also consider the effect the decision might have on