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P5-63 - P5-63 Boston Depot Customer Profitability...

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P5-63 Boston Depot - Customer Profitability Analysis #3 - Is the City of Albion a more profitable customer? Customer Profitability Analysis Omega Int'l City of Albion Omega Int'l City of Albion Sales $80,000 $80,000 Sales $80,000 $80,000 Product Cost (50,000) (48,000) Product Cost (50,000) (48,000) Service Fees (14,000) (14,000) Service Fees (9,450) (28,010) Gross Margin $16,000 $18,000 Gross Margin $20,550 $3,990 Gross Margin % 20% 22.5% Gross Margin % 26% 5.0% #2 - Using ABC, compute the total distribution costs for each of the customers. Distribution Services Activities for OI and CA Distribution Services Activities for OI and CA Omega Int'l City of Albion Omega Int'l City of Albion # of requisitions 300 700 # of requisitions $3,000.00
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