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Problem:

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) $10.00 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% In the prior year, Wizard had the following experience with one of its customers, Chester Company: Sales $15,000 Number of orders 160 Percent of orders marked rush .70 Calls to technical support 80.

Required:

Question: Calculate the profitability of the Chester Company account.

Note: Explain all steps comprehensively.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148337

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