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
Additional costs if order must be expedited (rushed)
Customer technical support calls (per call)
Relationship management costs (per customer per year)
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:
Number of orders
Percent of orders marked rush
Calls to technical support
Calculate the profitability of the Chester Company account.
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