Homework answers / question archive / 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  $7Additional costs if order must be expedited (rushed)  $9

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  $7Additional costs if order must be expedited (rushed)  $9

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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

 $7Additional costs if order must be expedited (rushed)

 $9.50 Customer technical support calls (per call)

 $12Relationship 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

 $15,000Number of orders

 160Percent of orders marked rush

 70%Calls to technical support

 80  Required:

 Calculate the profitability of the Chester Company account