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Define how do you calculate the sales return for jerry inc

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Reference no: EM131728844

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

Jerry Inc. Kate Co.
Number of orders 4 60
Units per order 3,000 220
Sale Returns:
Number of returns 2 5
Total units returned 50 160
Number of sales calls 10 6

Colleen Sells its products at $200 per unit. The firm's gross margin ratio is 30%.

The firm has determined the following activity costs:
Activity Cost Driver and Rate
Sales Calls $900 per visit
Ordering processing $390 per order
Deliveries 490 per order
Sales return 270 per return and $3 per unit returned
Sales salary 95,000 per month

How do you calculate the sales return for Jerry inc and for Kate Co when comparing the profitability of two customers.

Reference no: EM131728844

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