(11) (12) (13) (14) (15) (16) Whatever decision takes, Bracelet Delights must also consider the effect the decision might have on (17). 1: More Info 1. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $40 per hour spent with a customer. 2. Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate $24 per hour. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $110 per rush order. 3. 4. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $22 per return visit. 2: Data Table Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 80% of the selling price. Customer number 01 02 03 04 05 06 2. (1) O O 01 O 02 O 03 (6) O Sales revenue Cost of item(s) Hours spent on customer order Hours on fittings Number of rush orders Number of return visits O 04 O 05 O 02 O 06 O 03 O 01 (11) O O 04 O 05 06 3: Requirements 1. Calculate the customer-level operating income for each customer. Rank the customers in order of most a customer-profitability analysis. Are any customers unprofitable? What is causing this? What should Bracelet Delights do about these customers? (2) O O 01 O 02 O 03 O 04 O 05 O 06 $ $ (3) O (7) O Customer 03 is an 900 $ 720 $ 3 1 0 0 O 01 O 02 O 03 O Customers 06 and 03 are O There are no O charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders 5,000 $ 4,000 $ O 04 O 05 O 06 7 1 2 1 (4) O 290 $ 232 $ 2 1 1 2 (8) O high O low O 01 O 02 O 03 O 04 O 05 O 06 2,600 $ 2,080 $ (9) O high O low 8 2 0 0 5,500 $ 4,400 $ 15 6 2 3 (5) O O 01 O 02 O 03 550 440 O 04 O 05 O 06 least profitable and prepar (10) O large O small 2 1 0 1 increasing the selling price O paying a vendor to handle repairs O requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service (12) O O charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders (13) O O charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders (14) O O charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders (15) O O charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders (16) O O charging a small fee for repairs O charging more for rush orders O hiring more employees to handle rush orders (17) ○ the number of hours spent on customer order. the number of rush orders. Ototal sales. O increasing the selling price O paying a vendor to handle repairs O requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service O increasing the selling price O paying a vendor to handle repairs O requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service O increasing the selling price O paying a vendor to handle repairs O requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service O increasing the selling price O paying a vendor to handle repairs O requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service O increasing the selling price O paying a vendor to handle repairs O requiring a minimum amount of orders for free post-sales service O requiring a minimum total revenue for free post-sales service