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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers.

$\backslash$table$[[,\backslash$table$[[$Jerry$,],[$Incorporated$]],\backslash$table$[[$Kate$],[$Company$]]],[$Number of orders,$6,30],[$Units per order,$2,000,440],[$Sales returns:,,$],[$Number of returns,$4,5],[$Total units returned,$60,180],[$Number of sales calls,$11,3]]$

Colleen sells its products at $$180$ ?per unit. The firm's gross margin ratio is $25\%.$ ?Both Jerry and Kate pay their accounts promptly and no accounts receivable is over $30$ ?days. After using business analytics software to carefully analyze the operating data for the past $30$ ?months, the firm has determined the following activity costs:

$\backslash$table$[[$Activity$,$Cost Driver and Rate$],[$Sales calls,$$800$ ?per visit$],[$Order processing,$420$ ?per order$],[$Deliveries$,400$ ?per order$],[$Sales returns,$290$ ?per return and $$3$ ?per unit returned$],[$Sales salary,$114,000$ ?per month$]]$

Required:

Using customers as the cost objects, classify the activity costs into cost categories $($unit$-$level, batch$-$level, etc.$)$ ?and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company.

Compare the profitability of these two customers.

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Using customers as the cost objects, classify the activity costs into cost categories $($unit$-$level, batch$-$level, etc.$)$ ?and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company.

$\backslash$table$[[,\backslash$table$[[$Jerry$,],[$Incorporated$]],$Kate Company$],[$Customer unit level costs:,,$],[,,],[$Customer batch level costs:,,$],[,,],[,,],[,,],[,,],[$Customer sustaining costs:,,$],[,,],[$Total$,,]]$

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