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

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 to 75% 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 rush 70%

Calls to technical support 80  

Required:

 Calculate the profitability of the Chester Company account.