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Colby Company makes cases for cell phones of all sizes and types for sale through...

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Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Activity Cost Pool Supporting manufacturing Order processing Customer service Activity Rates $ 2 per direct labour-hour $10 per order $51 per customer Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case Standard Model 100 5 0.25 $ 30 $ 7 Deluxe Model 10 2 0.40 $ 50 $ 10 The company's direct labour rate is $10 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Customer margin

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