Van and Mourik (known as VAM) are a manufacturer of designer up-market business shirts. To maintain...

 

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Van and Mourik (known as VAM) are a manufacturer of designer up-market business shirts. To maintain the exclusivity of their brand name VAM only sell their shirts to four retail stores located in Carlton, Chadstone, Toorak, and South Yarra. The list selling price per business shirt is $200 and the average cost per business shirt is $110. VAM has recently appointed a new accountant, Greg, who decided that it would be a good idea to evaluate the profitability of each of VAM's four customers. Greg has collected the following information for 2016: Activity Order processing Sales visits Delivery - regular Delivery rush orders Total number of orders Total number of sales visits Cost driver Number of purchase orders Number of customer visits Number of regular deliveries Number of rushed deliveries Regular deliveries Rushed deliveries Average number of shirts per order Average selling price per shirt Carlton Chadstone Toorak 200 20 120 80 20 $170 40 10 30 Rate $250 per order $1,000 per visit $300 per delivery $2,000 per delivery 60 10 50 10 10 400 200 $150 $180 Required a. Calculate the profitability for each of VAM's four customers. South Yarra 250 20 150 100 25 $160 Van and Mourik (known as VAM) are a manufacturer of designer up-market business shirts. To maintain the exclusivity of their brand name VAM only sell their shirts to four retail stores located in Carlton, Chadstone, Toorak, and South Yarra. The list selling price per business shirt is $200 and the average cost per business shirt is $110. VAM has recently appointed a new accountant, Greg, who decided that it would be a good idea to evaluate the profitability of each of VAM's four customers. Greg has collected the following information for 2016: Activity Order processing Sales visits Delivery - regular Delivery rush orders Total number of orders Total number of sales visits Cost driver Number of purchase orders Number of customer visits Number of regular deliveries Number of rushed deliveries Regular deliveries Rushed deliveries Average number of shirts per order Average selling price per shirt Carlton Chadstone Toorak 200 20 120 80 20 $170 40 10 30 Rate $250 per order $1,000 per visit $300 per delivery $2,000 per delivery 60 10 50 10 10 400 200 $150 $180 Required a. Calculate the profitability for each of VAM's four customers. South Yarra 250 20 150 100 25 $160

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Calculate the profitability for each of VAMs four customers Carlton Revenue Average selling price pe... View the full answer