How calculate profitability of the chester company account

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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)
$9.00 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% of Sales.

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:

Problem 1: Calculate the profitability of the Chester Company account.

Reference no: EM132956305

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