Calculate the profitability of the Johnson Brands

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Reference no: EM13905282

Eagle Logistics has determined the following costs:

Order processing (per order) : $ 7

Additional handling costs if order marked rush (per order) : $ 12

Customer service calls (per call) : $ 13

Relationship management costs (per customer per year) : $ 3,700

In addition to these costs, product costs amount to 85 percent of sales. In the prior year, Delta had the following experience with one of its customers, Johnson Brands:

Sales : $54,900

Number of orders: 270

Percent of orders marked rush: 70%

Calls to customer service: 161

Calculate the profitability of the Johnson Brands account. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Profit / (Loss) of the Johnson Brands account $ ____?_____

Reference no: EM13905282

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