Assignment
Assume the following activity based system information :
|
Customer related activities
|
Cost driver base
|
Cost driver rate
|
Customer 1
|
Customer 2
|
|
Sales Activity
|
Sales visits
|
1000
|
8 visits
|
6 visits
|
|
Order Taking
|
Purchase Order
|
200
|
15 orders
|
20 orders
|
|
Special handling
|
Units Handled
|
50
|
800 units handled
|
600 units handled
|
|
Special shipping
|
Shipments
|
500
|
18 shipments
|
20 shipments
|
|
Customer 1
|
Customer 2
|
|
Sales Revenue
|
190,000
|
123,000
|
|
COGS
|
80,000
|
62,000
|
|
General selling costs
|
24,000
|
18,000
|
|
General administrative costs
|
19,000
|
16,000
|
|
Operating Income
|
67,000
|
27,000
|
Prepare the customer flexibility analysis for customers 1 and 2
Additional information for six other customers as follow:
|
Customer 3
|
Customer 4
|
Customer 5
|
Customer 6
|
Customer 7
|
Customer 8
|
|
Operating income
|
71,000
|
-18,000
|
60,000
|
42,000
|
93,000
|
6,000
|
Prepare the customer profitability graph
Prepare the customer profitability profile
Comment on the result