Adams Betz Chatham $357,380 Dedham Elm Gross revenue Customer-level costs $234,000 $188,800 117,200 $147,840 115,720 $73,200 147,000 218,580 57,040 Overhead costs total $340,400. Louise has determined that 25% of her overhead costs relate directly to her architectural business, 40% relate directly to her window treatment business, and the remainder are corpo- rate overhead costs. On the revenues indicated above, Louise gave a 10% discount to Adams in order to lure it away from a competitor and gave a 5% discount to Elm for advance payment in cash. 1. Prepare a customer-cost hierarchy report for Interiors by Louise, using the format in Exhibit 14-6. 2. Prepare a customer-profitability analysis for the five customers, using the format in Exhibit 14-4. 3. Comment on the results of the preceding reports. What recommendations would you give Louise? Required

Adams Betz Chatham $357,380 Dedham Elm Gross revenue Customer-level costs $234,000 $188,800 117,200 $147,840 115,720 $73,200 147,000 218,580 57,040 Overhead costs total $340,400. Louise has determined that 25% of her overhead costs relate directly to her architectural business, 40% relate directly to her window treatment business, and the remainder are corpo- rate overhead costs. On the revenues indicated above, Louise gave a 10% discount to Adams in order to lure it away from a competitor and gave a 5% discount to Elm for advance payment in cash. 1. Prepare a customer-cost hierarchy report for Interiors by Louise, using the format in Exhibit 14-6. 2. Prepare a customer-profitability analysis for the five customers, using the format in Exhibit 14-4. 3. Comment on the results of the preceding reports. What recommendations would you give Louise? Required

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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Mangi
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