Customer Profitability AnalysisElite Services, Inc. provides residential painting services for three home building companies, Brookside, Edgewater, and Hillrose, and it uses a job costing system for determining the costs for completing eachjob. The job cost system does not capture any cost incurred by Elite for return touchups and refinishes after the homeowner occupies the home. Elite paints each house on a square footage contract price,which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, the company generates about one-third of its total revenues and gross profits from each of thethree builders. The Elite owner has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered:Support ActivityDriverMajor refinishesHours on jobsNumber of visitsTouchupsCommunication Number of callsMajorBuilder Refinishes TouchupsBrooksideEdgewaterHillroseCosts per Driver Unit$ 150$ 100$301207080Edgewater $Hillrose $260205220Communication900530590Assuming that each of the three customers produces gross profits of $150,000, calculate the profitability from each builder after taking into account the support activity required for each builder.Brookside $

Customer profitability analysis is a type of analysis that helps to determine how profitable a…

Assuming that each of the three customers produces gross profits of $150,000, calculate the profitability from each builder after taking into account the support activity required for each builder. Brookside $ Edgewater $ Hillrose $

Assuming that each of the three customers produces gross profits of $150,000, calculate the profitability from each builder after taking into account the support activity required for each builder. Brookside $ Edgewater $ Hillrose $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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please explain what fromulas and rules were used
HyStandard Services, Inc. provides residential painting services for three home building companies, Alpine, Blue Ridge, and Pineola, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by HyStandard for return touchups and refinishes after the homeowner occupies the home. HyStandard paints each house on a square footage contract price, which includes painting as well as all refinishes, and touchups required after the homes are occupied. Each year, the company generates about one-third of its total revenues and gross profits from each of the three builders. The HyStandard owner has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered: Support Activity Major refinishes Touchups..... Communication Builder Alpine.... Blue Ridge.. Pineola... Major Refinishes 80 35 42 Driver Hours on jobs Number of…
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